RTL Today – Notice for parents: “Child years”, a benefit for your future Luxembourg pension

Whether they are residents or cross-border workers, many are still not aware of the “child year”, a right that allows parents to recover pension insurance in Luxembourg for up to 4 years. We explain how to benefit from it.

Luxembourg of course A country that cajoles parents.

Not content with some of the longest parental leave in Europe (and very well paid), breastfeeding breaks, or even generous allowances, it allows mothers and fathers to benefit from the benefits of their pensions. : “Child Years”.

What is the baby year?

As the National Pension Insurance Fund (CNAP) explains, “baby years” are a period of insurance Two years (24 months) Adoption is considered for parents to devote themselves to the education of a legitimate, legitimate, natural or adopted child under four years of age.

But beware, this deadline is extended 4 years (48 months) If the parents bring up two additional children in their family, or if the child suffers from one or more conditions that reduce the physical or mental capacity of a normal child of the same age or permanently reduce it by at least 50%.

In short, the purpose of “Baby Years” is to enhance the educational work of parents, ensuring that this time is spent on education. (And which is sometimes done to the detriment of professional life) have less negative impact on their rights to an old-age pension.

woman As family reasons are heavily influenced by career breaks. And when it comes time to retire, they often cost a lot…especially in Luxembourg! According to Eurostat publications (see below), the pension gap between men and women in Luxembourg was 44% in 2019. The worst gap in Europe.

Do you need to stop working for profit?

Of course, these “baby years” are especially aimed at parents who interrupt, in part where completely, their job is to devote themselves to the education of their children. Thus, for example, if a person interrupts his work for four years to devote himself completely to his child, he can still count the insurance period. two years Thank you baby years.

But this right is also open Parents who did not stop working! This is what a CNAP official confirmed to us: “Article 171, Article 1 point 7 of the Social Security Code does not require the insured to reduce or abandon his professional activities so that he takes care of the child’s education. For which he requested the inclusion of the child. Year period” she confirms.

Be careful though, not to be confused with the “infant year” period Education package or parental leave.

Who is right?

Fathers who fulfill this are entitled “years of the child”. Two criteria:

  • Justification a Social Security affiliation Luxembourgish;
  • have dedicated themselves For education in Luxembourg Their legitimate, legitimate, natural or adopted child is under 4 years of age at the time of adoption.

CNAP also specifies that ““Years of the child” are considered upon request, provided that the person concerned has twelve months of compulsory insurance within a reference period of thirty-six months before the birth or adoption of the child.

Does that mean that child? Must reside in Luxembourg, the first condition above seems to be true? Not necessarily, the CNAP expert replied: “Under the supervision of national law, the child’s education must take place in the territory of the Grand Duchy of Luxembourg. However, this claim should be frowned upon in European law.In fact, he continued, the residency condition could thus be waived if:

  • The insured person was connected to compulsory pension insurance in Luxembourg immediately before the birth of the child,
  • and the period of education of the child is not taken into account by the law of the place of residence of the insured (for example in France, Belgium or Germany).

In short, if Borderline parenting By meeting these two criteria, they are entitled to benefit from “Baby Years”.

Another important question, Distribution of this time between parents. A period of twenty-four or forty-eight months can be shared between the parents, provided that the requests presented by both parents do not exceed this maximum period (if it is a period of 24 months, the parents can request for example 12 months each, or 8 months for one and 16 months for the other).

And if the parents do not agree (divorce, etc.)? In the absence of agreement between the two parents regarding the distribution of periods, preference is given to consideration The parent who is primarily responsible for raising the child (Although we imagine this is not always easy to determine).

How is the period of child years calculated?

“Child years” are counted as “Monthly average of contributory income calculated for compulsory insurance in twelve months of insurance Immediately prior to delivery or adoption. However, the income taken into account cannot be less than 270.28 euros per child and per month based on the 100-point cost-of-living index and the base year is 1984.” Not easy! To see more clearly, we recommend you contact CNAP who will be able to explain to you on a case-by-case basis.

When to apply?

The application must be submitted from the age of 4 years of the child and at the latest at the time of application for personal pension” says CNAP. final validity of time”baby years” can only be done, when a pension application is being examined. Find all the details under “Child years” on the CNAP website and at Guichet.public.lu.

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