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Parallel calculation method


The pension benefit entitlement of persons born on or after 1 January 1955 who paid insurance contributions prior to 1 January 2005 is determined using the so-called parallel calculation method:

  • Benefits are calculated per the APG for the whole insurance period using the new regulations as if these had been valid since commencement of the insurance period (“APG pension”). For the method of calculation, see “Pension benefit entitlements - persons born in or after 1955".
  • Benefits are calculated per the old regulations for the whole insurance period using the old regulations as if these had continued to be valid until commencement of the pension (“old pension”). For the method of calculation, see “Pension benefit entitlements - persons born before 1955”.
The two results are then apportioned according to the insurance periods before and after 1 January 2005.

The parallel calculation method is not employed if the insurance months acquired prior to or after 1 January 2005 constitute less than 5% of the total insurance months or total less than 36 insurance months.