pension from the general scheme.5 The value is always under the minimum pension of the
general scheme.
The special scheme for public servants is under supervision of Ministry of Finance. It is a
mandatory scheme financed by social contributions paid by employees and employer and
operates on a PAYG basis.6 Until 2005 public servants who started working before 1993
have been under more generous retirement conditions than workers of private sector,
namely: the old-age pension may be claimed before the age of 60 with a period of insurance
at least 36 years; because the reference earnings is the last monthly wage the public
servants with a complete career have a replacement rate of 100%7. The gradual
harmonisation of this scheme with the general scheme is now to be implemented: the rising
of retirement age to 65 (six months a year in the next ten years); the rising of the insurance
period up to 40 years until (six months a year until 2016); the reduction of the amount of
pension in case of early retirement; and the inclusion of all new public servants in the
general scheme from 2006.
The second pillar (voluntary and funded) is under-developed. These schemes are usually
pension’s funds managed by private institutions.
The third pillar (individual, voluntary and funded) is mainly represented by life insurance
schemes and pensions funds. Its growth has been encouraged by tax incentives.
2.2. Pensioners and pensions
In line with trends observed in other European countries, the number of contributory
pensions has significantly increased (Table 2-1). During the 1994-2001 period, both the
retirement pensioners under the Public Servant Scheme and the General Regime have
increased by 33% and 34%, respectively. The numbers of pensioners covered by the Non-
Contributory Regime and by the Special Social Scheme for Agricultural Activities
(RESSAA) have showed a significant decline (50% and 28%, respectively)8.
5 The monthly income cannot exceed 30% of the minimum wage for a single person or 50% for a couple.
6 The Central Government is an exception: only makes transfers to cover the annual deficit.
7 Since 1993, all new public servants have been under the same retirement conditions as private sector
workers.
8 The Special Social Scheme for Agricultural Activities (RESSAA) has been closed in 1986.