Establishing a senior employee scheme requires an agreement with management. The agreement must be approved by the local union representative. Thus, there is no legal claim to obtain a senior employee scheme. Both the employee and his/her management may take the initiative to establish a senior employee scheme.
It is the local management that assesses the possibilities and appropriateness of establishing a senior employee scheme for the individual employee. Senior employee schemes are based on voluntariness and require agreement between the employee and the management. The local agreements are adjusted according to the conditions in the workplace and the individual employee’s conditions.
The financial terms are agreed with the employee covered by the scheme, but are formalised by an agreement between the appointing authority and the relevant organisational representative. An appointing authority’s decision not to enter into an agreement on a senior employee scheme is not an administrative decision that can be appealed.
Content of the senior employee scheme
A senior employee scheme may include gradual withdrawal in the form of job/charge (withdrawal), time (part-time), paid leave or a retention bonus. The agreement provides access to an individual scheme combining the different elements.
Possible senior schemes:
A reduction of rank requires that
- You have reached the age of 58
- You take a lower-graded post upon application
- You have been employed for the last 10 years in a full-time position with managerial/supervisory responsibilities or in a similarly demanding position
Managers may be granted a personal, non-pensionable salary equalisation allowance which is phased out over three years
A reduction of hours requires that
- You have reached the age of 60
- You have been employed for a total of 10 years
- Your working time is at least 15 hours per week after the reduction
- Your collective agreement allows you to be employed part-time
It is possible to agree on payment of an extra pension contribution corresponding to the pension contribution for full employment.
Paid time off or retention bonus requires that
- You have reached the age of 62
- It can be agreed that up to 1 day off (senior day) with pay is granted per month.
The number of senior days included in the senior scheme is stipulated in the specific agreement between SDU and the employee.
Process for senior schemes
Here you can find the process description of the senior employee scheme agreement.
See also:
Circular on seniority schemes (in Danish only)