The new federal pension measures place greater emphasis on the number of days actually worked. This shift has direct consequences for employees who work part-time or spend long periods on sick leave. Both the statutory pension and the supplementary pension depend heavily on a person’s career history.
Beyond the gradual increase of the statutory retirement age to 67 by 2030, the career conditions for early retirement will also become stricter.
From 2027 onwards, a year will only count if there are 156 actual worked (or equivalent) days instead of 104 days, or 4 months full-time, as is currently the case. This number corresponds to at least a half-time job or 6 months of full-time employment. For employees who work part-time or take extended time off due to illness, reaching this threshold becomes more difficult. As a result, they may build up fewer qualifying years - even though certain types of leave are still considered equivalent to working days.
In 2027, a bonus-malus system will also be introduced. Employees who continue working beyond the statutory retirement age can earn a pension bonus, while those who stop early without meeting the conditions may incur a malus.
For employers, this evolution brings new challenges: longer careers, a growing need to keep work manageable, and increasing expectations around flexibility. In sectors with physically demanding roles, you may see more questions about career planning or requests for adjustments. The combination of longer career requirements and part-time employment makes pension planning both more complex and more essential than ever.
The impact of part-time work on supplementary pensions
Part-time work influences not only the statutory pension, but also the accumulation of supplementary pension capital - often the most significant part of an employee’s retirement income. The way the impact plays out depends on the type of plan.
✔️ Proportional accrual in Defined Contribution plans
For many employees, the supplementary pension is funded via a Defined Contribution (DC) plan, where the employer pays contributions (for example, 3% of the salary). When an employee works part-time, the contributions are reduced proportionally to the working time percentage.
This means:
- lower pension contributions during part-time work
- less investment growth
- a lower final pension capital
And the timing matters: the earlier and longer in a career someone works part-time, the greater the long-term impact.
📊 Sample case (DC plan, 3% contribution, full-time annual salary EUR 50,000)
| Career scenario | Annual contribution | Final capital | Comments |
|---|---|---|---|
| 45 years, full-time | €1,500 | €125,331 | Reference amount (full-time career) |
| 30 years FT + 15 years 50% | €1,500 + €750 |
€111,546 | Part-time towards the end |
| 15 years 50% + 30 years FT | €750 + €1,500 | €96,416 | Part-time early in career = greater impact |
| 45 years 50% | €750 | €62,666 | Exactly 50% of full-time capital |
Assumption: annual return of 2.50%, in line with the current statutory minimum return.
👉 This example clearly shows that timing is crucial. Early part-time work has the strongest effect because compound interest has more time to amplify the difference.
✔️ Impact in Defined Benefit plans
A minority of employees accrue a supplementary pension via a Defined Benefit (DB) plan. Here, the final capital depends on salary and years of service.
In DB plans, part-time years count pro rata, regardless of when they occur.
Example:
- 15 years at 50% = 7.5 full-time equivalent years
- followed by 30 full-time years = 37.5/45
- final capital = 37.5/45 of the plan-defined amount instead of 45/45
👉 In DB plans, it’s not the timing but the total number of part-time years that determines the impact.
What if an employee has a career gap due to illness?
When an employee is on long-term sick leave, their supplementary pension is often affected. Contribution payments typically stop, meaning no further pension accrual - and in some plans, even the death benefit coverage may lapse.
👉 With waiver of premiums coverage, you can avoid this risk. Contributions to the employee’s supplementary pension continue even if they cannot work due to illness. This protects their financial future and shows that you are a caring and provident employer.
Ensure transparency
Your employees can check their benefits and covers at any time via the convenient MyAG Employee Benefits app. They also have instant access to the most up-to-date overview of their supplementary pension capital. This boosts transparency while also reducing the administrative workload for your HR department.
To help you promote the app internally, we offer a ready-made communication toolkit.
Questions?
If you have any questions, your dedicated AG Employee Benefits & Health Care contact person will be happy to help.