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Flexible retirement

Application scope

It will apply to all Social Security schemes, except the  Special Schemes  of State Civil Servants,  the Armed Forces and Legal Service Personnel.


  • The situation of flexible retirement is considered to arise from the option to make the retirement pension, once in effect, compatible with a part-time contract, within the limitations regarding working hours set out by Article 12.6 of the |ET, with the resulting reduction of the pension being inversely proportional to the reduction applicable to the pensioner's working hours, in relation to that of a comparable full-time worker.
  • To this end, a "comparable full-time worker" is considered to be a full-time worker at the same company and work centre, with the same type of employment contract performing a similar or identical role. If there is no comparable full-time worker at the company, the full-time working day provided for in the applicable collective agreement, or in its absence, the maximum legal working day, will apply.
  • Effective 3/17/2013, the working day reduction limit is between a minimum of 25% and a maximum of 50%. As a result, the retired person should work 50% to 75% of the hours worked by a full-time worker.

Communication of activities / Partial Suspension / Conditions

  • The retired pensioner must report this circumstance to the respective managing entity before commencing the activities in the part time contract.
    • The amount of the pension to be received will be reduced in inverse proportion to the reduction in the working day carried out by the pensioner, in relation to that of a comparable full time worker.

    • The reduction in the pension amount will take effect from the day on which he/she commences the activity.

    • Failure to report this under the terms indicated will have the following effects:
      • The pension will become due, to the amount corresponding to the part time activity, from the date of the start of the corresponding activities.

      • The obligation to return what has been received unduly, without prejudice to any penalty in accordance to the Law on offences and sanctions in the welfare system.

      Compatibility / Incompatibility

      • The flexible retirement pension will be incompatible with pensions for permanent disability which may correspond to the activity carried out, subsequent to the recognition of the retirement pension, regardless of the scheme which causes them.
      • Reception of a flexible retirement pension will be compatible with the benefits for temporary disablement or maternity, derived from the part-time activity carried out. 

      End of activities / Conditions / Pension recalculation

      Contributions made in activities carried out during the partial suspension from the retirement pension will have the effect of improving the pension, once the work has come to an end.

      Once these activities have ended and have been reported to the managing organisation responsible, full receipt of the retirement pension will be established following its recalculation according to the following rules

      • The regulating base will be recalculated, by calculating the new contributions and applying the rules in force at the time of the end of the activity, unless these rules result in a reduction in the amount of the earlier regulating base, in which case, the former will be maintained, albeit revaluing the pension amount from the calculation date of the regulating base to the end of working activity.
      • The contributions made, following the reduction of the amount of the retirement pension:
        • Will give rise to the modification of the percentage applicable to the regulating base, according to the new period accredited.

        • They will reduce or, if applicable, suppress the reduction coefficient which would have been applied, at the time of giving the right to an early retirement pension for being an insured person, or not, as applicable.

        • If the worker were to die during flexible retirement, beneficiaries may opt for the calculation of the corresponding death and survival benefits to be calculated:
          • From the active situation of the originating contributor.

          • Or, if applicable, as a pensioner. In this case, the regulating base will be taken as the base used to determine the retirement pension, applying any revaluations since the time when the regulating base was determined.

          Other conditions

          While receiving the flexible retirement pension, recipients will maintain the status of pensioners for the purpose of awarding and receiving health benefits.

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