New pension rules for employees with special age limits 

New pension rules have been adopted for public sector employees with a special age limit who were born in 1963 or later. This follows up on the agreements of August 25, 2023, and January 13, 2025, both entered into between the Ministry of Labour and Inclusion and the parties in the public sector. 

About Special Age Limits 

For most positions, special age limits are no longer upper age limits for the positions, but rather age limits that entitle employees to pension benefits, making it possible to retire earlier than employees without a special age limit. The rules are justified by the fact that certain positions involve unusual physical or psychological strain or require special physical or psychological characteristics that are not compatible with the general age limits. Most positions with special age limits are found in the police, fire service, armed forces, health care, and correctional services. 

The current special age limits are 60, 63, and 65 years. It is anticipated that these age limits may/will be adjusted for life expectancy, meaning that the special age limits will be higher for younger cohorts. 

The Rules Aim to Ensure a Good Pension Level for Those with Special Age Limits 

The rules aim to ensure a good lifelong pension level for employees who must retire earlier due to special age limits. Without these changes, these employees would receive a significantly lower retirement pension than employees with the general age limit. 

The New Retirement Pension Rules in Brief 

Early Retirement Pension 

The current early retirement scheme, which provides 66% compensation, will continue for: 

• persons born between 1963 and 1964 with a special age limit of 65 years 

• persons born between 1963 to 1966 with a special age limit of 63 years 

• persons born between 1963 to 1969 with a special age limit of 60 years 

For person born in 1967 or later with a special age limit of 63 years, and for persons born in 1970 or later with a special age limit of 60 years, a new early retirement pension is introduced. The 85-year rule, which allows for pension withdrawal three years before the age limit, is gradually phased out. For the special age limit of 65, the early retirement scheme is discontinued from the 1965 cohort. These will only receive the special age supplement, see below. 

For those who meet the qualification requirements for the new early retirement pension, the new early retirement pension amounts to 66% of the pension base (provided at least 30 years of service). 

The new early retirement pension is reduced if pensionable income after withdrawal exceeds an income limit. The income limit for those who retire completely and receive an unreduced early retirement pension is 2.7 G (National Insurance basic amount). 

Special Age Limits Supplement 

A new pension benefit is introduced for people with special age limits born from 1963 onwards, called the special age limits supplement. This is a lifelong addition to the ordinary occupational pension. The special age limits supplement is calculated as a percentage of the pension base in the position with a special age limit (for those who meet the qualification requirements). The percentage is: 

• 5.8% for those with an age limit of 65 years 

• 6.5% for those with an age limit of 63 years 

• 7.7% for those with an age limit of 60 years 

Special rules are introduced to handle service time before January 1, 2025. 

The lifelong level of the special age limits supplement will be reduced for those who have income above an income limit after withdrawal of the supplement. The income limit for those who retire completely and receive an unreduced special age limits supplement is 1G. The lifelong level is also reduced for those who withdraw the special age limits supplement later than two years before the age for unconditional entitlement to retirement pension from the National Insurance Scheme.  

The special age limits supplement is paid out no earlier than when the member reaches the lowest withdrawal age for retirement pension from the National Insurance Scheme. For people receiving early retirement pension, the special age supplement is paid from the age of unconditional entitlement to retirement pension from the National Insurance Scheme, i.e., when the early retirement pension is replaced by the ordinary occupational pension. 

Adjustments to the disability benefit rules 

The rules governing disability benefit for persons with reduced work and earning capacity, which are in positions with special age limits, are also adjusted. 

The amending acts and their legislative history 

The amending acts and their legislative history are available here.