The rules regarding senior schemes are regulated by the "Circular on Agreement on Senior Schemes" dated November 5, 2024. Here you can find the regulatory framework.
The purpose of these rules is to support a good working life for senior employees, making it attractive for them to continue their employment.
Framework for Establishing Senior Schemes
A senior scheme can be established when the employing authority deems it possible and appropriate.
There is no obligation or entitlement to enter into a senior scheme agreement; such arrangements are voluntary.
The establishment of a senior scheme is agreed upon with the employee, but formalized by the employee's union representative, who signs the agreement.
Content of the Senior Scheme
A senior scheme can include various elements that support retention and a good working life for senior employees, such as:
- Reduction in working hours (part-time)
- Reduction in job position (retreat)
- Senior days (paid leave) or
- A retention bonus
A senior scheme can be agreed upon that combines different elements. The following describes the various options:
1. Reduction in Working Hours (Part-Time)
Reduction in working hours (part-time) combined with pension contributions up to the previous level of employment requires:
- The employee must be at least 60 years old when the scheme takes effect
- The employee must have a total of 10 years of employment within the state
- The working hours must be at least 15 hours per week after the reduction
- The employee must be able to be employed part-time according to their collective agreement
2. Reduction in Job Position (Retreat)
The establishment of a senior scheme with reduction in job position requires:
- The employee must be at least 58 years old when the scheme takes effect
- The employee transitions to a lower-ranked position upon application, after having been employed full-time in a managerial or supervisory position for the last 10 years
The employing authority and the employee can agree that the employee will be granted a personal, non-pensionable allowance, which must not exceed the difference between the salary, excluding pension contributions, in the former position and the salary, excluding pension contributions, in the new position at the time of transition. The allowance must be fully reduced within a maximum of 3 years and must be reduced by at least one-third every 12 months from the transition to the new position. The allowance, however, ceases from the month following the employee's attainment of the current retirement age.
3. Senior Days (Paid Leave)
The establishment of a senior scheme with senior days (paid leave) requires:
- The employee must be at least 62 years old when the scheme takes effect
An agreement can be made to grant up to 1 day of leave (senior day) with pay per month. The number of senior days is determined in the specific agreement between the employing authority and the employee.
The leave can be taken as full or half days, individually or consecutively, or as single hours. The employing authority sets the time and/or conditions for the leave after consultation with the employee. Agreed senior days cannot be carried over to subsequent years and must be taken within the year they are granted.
4. Retention Bonus
The establishment of a senior scheme with a retention bonus requires:
- The employee must be at least 62 years old when the scheme takes effect
The employing authority and the employee can agree on a special retention bonus, which will be paid if the employee postpones their resignation until a specified date. The amount of the special retention bonus is agreed upon between the employing authority and the employee.
The retention bonus is paid with the salary payment in connection with the agreed date.
Payment of the retention bonus is not contingent on the employee's resignation. If the employment ends before the agreed date, a proportional share of the retention bonus is paid.
The retention bonus is forfeited if the employment ends before the agreed date due to resignation or dismissal for criminal conduct or other misconduct by the employee.
No holiday allowance is calculated on the retention bonus.
Questions regarding the rules can be directed to HR Staff.