What you need to know about retiring early
It has been agreed in the pension agreement that employees can retire earlier without employers having to pay an extra expensive levy. This is a temporary exemption. At the AOb questions come in from older employees who want to know whether they can now also retire early.
Employers no longer have to pay an extra 52 percent levy if an employee wants to retire earlier. “This is a temporary five-year exemption that took effect at the beginning of this year and will run until the end of 2025,” says Jim van Emden, policy officer at the AOb. Within education, no separate collective labor agreements have been made about this arrangement from the pension agreement. "Education employees should therefore arrange this individually, which is different from, for example, the cleaning sector or the meat industry, where collective agreements have been made."
We have listed all frequently asked questions from educational staff about early retirement. Are you a member? Then you can always use our AObemployees of the Information and Advice Center (IAC) dial.
Make an appointment the pension agreement is that it should be possible for people in demanding professions to retire earlier. What exactly has been agreed?
The agreement consists of two parts. First of all, the options for saving leave have been expanded. Employees are now allowed to save tax-facilitated vacation and compensation leave for a maximum of 50 weeks. This limit is increased to 100 weeks.
In addition, it has been agreed that employers will not have to pay an RVU fine for the next 5 years (see question below for an explanation). In the period from 1 January 2021 to 31 December 2025, employers will be given the opportunity to pay a benefit to employees who are no more than 36 months before the state pension age. This benefit bridges the period up to the commencement date of the AOW. The details are free of the RVU levy up to a maximum of EUR 1847 per month. A subsidy of 800 million euros is also available for sustainable employability and early retirement. There are conditions attached to this, read the Letter to Parliament about that.
What is an RVU fine?
RVU stands for Early Retirement Scheme. From 2005 onwards, the government wanted employees to work longer. They made tax legislation for this and all constructions that looked like an early retirement were taxed with a final tax of 52 percent. For employers, it was uninteresting to enter into schemes with employees that aimed to bridge the period up to retirement financially. This becomes easier again with the temporary exemption from the pension agreement.
The RVU fine does not apply to heavy professions. Is education a tough profession?
It has been agreed in law that in the sectors employers and employees themselves determine what a demanding profession is. For the AOb it is undeniably certain that teaching jobs can be classified here.
What conditions does the subsidy have for sustainable employability?
In order to qualify for a subsidy from the € 800 million pot, a sector analysis must be made in which the bottlenecks surrounding sustainable employability become clear. Employers and trade unions have agreed to a sector analysis for all education sectors. It is clear that employers are not enthusiastic about schemes that make it possible to retire earlier. The analysis is now carried out in all education sectors.
Have arrangements been made to stop earlier?
Yes, in sectors with physically demanding and practically skilled work. For example in the collective labor agreement for the meat sector and the cleaning sector. These agreements are not yet in place in the public sector.
What is the position of the AOb?
De AOb believes that all employees should be able to continue working up to the state pension age in a healthy and pleasant manner. Our commitment to all collective labor agreements therefore states that we want a generational pact. Older employees will then be given the opportunity to work less and hire young employees. The subsidy fund could possibly be the final push that employers need.
Early retirement can be a solution for individuals or for specific schools or institutions. The 1847 euros per month will be insufficient for the vast majority of employees in education to stop working earlier.
De AOb will, in times of teacher shortages, not advocate this scheme for everyone in all educational sectors. Ultimately, the sector councils of the AOb the specific CLA commitment for their sector.
Can I retire early while retaining a (partial) salary due to the measures in the pension agreement, without having to take early retirement?
In education this is not regulated in the collective labor agreement. You can submit what is possible to your employer on an individual basis. However, this is not a right and cannot be enforced. Sometimes policy has been drawn up at board or institutional level. It is advisable to inquire about this.
What else has been arranged for the older employee?
Sustainable employability schemes (formerly the bapo) have been concluded in the education collective agreements. These schemes offer the option of working less for a personal contribution. You can find more about this in the CLA or contact us. Sometimes a specific policy has been drawn up for the older employee at school at the institutional level. It is advisable to inquire about this. It is also possible to take early retirement. This does cost money. Members of the AOb can discuss the situation with a consultant. Please contact us.