It is a top-up pegged to the postponement of pension beyond the age of 61 provided that the pensioner was eligible to claim for a pension at least one year prior to his/ her pension age but continued to work.
Measure came into effect in 2016. Until 2018, incentive was only applicable to private sector employees. In 2019, it has been extended to include public service employees.
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Mr. X claimed his state pension in 2015. He was entitled to the maximum pension, which in 2015, was of €228.75 weekly. He did not benefit from the percentage increase measure since measure came into effect in year 2016.
Mr. Y is an ex-private sector employee and started to receive his state pension in 2016. He was entitled to the maximum pension for year 2016, €229.92, and was entitled to a 5% increase. His new pension rate read: €241.42.
Mr Z was a public service employee who started to receive his state pension in 2016. He was entitled to the maximum pension for year 2016, yet did not benefit from the % increase measure since measure was extended to public service employees in 2019.
However, for the latter cases, as from Year 2020, Public sector and public service employees who retired during and after 2016 and delayed their pension but did not benefit from the percentage increase measure, will have their pension rate revised. The original pension rate will be increased with the deferral percentage rate due and a new revised rate of pension will be issued as from 2020.