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RETIREMENT AND DISABILITY INSURANCE

Not all unemployed persons registered with the National Employment Service have the right to retirement and disability insurance, only those unemployed persons that are entitled to cash benefit. In effect, beneficiaries of cash benefit are entitled to retirement and disability insurance during the period of exercising the right to cash benefit.

Contributions for retirement and disability insurance are calculated in accordance with the amount of cash benefit, and the calculation and payment of thereof is to be done by the National Employment Service. The period of time covered by cash benefit and contributions for retirement and disability insurance is entered into the beneficiary’s record with the National Employment Service and into beneficiary’s work record book and is included into the overall length of insurance coverage in exercising the right to retirement and disability insurance. The period of time can vary from at least 3 to not more than 24 months, bearing in mind that only in exceptional cases are unemployed persons entitled to cash benefit in the duration of 24 months - if there are up to two years left to meet eligibility conditions for exercising the right to retirement. The amount of paid cash benefit for which the contribution has been paid, poses the insurance basis to be used for the calculation of the amount of the right to be exercised (e.g. old-age pension).

 

 

 

 
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