Who is concerned
- Insured employees or self-employed workers whose pension contributions history is incomplete and who have not benefited, whether in Luxembourg or abroad, from pension payments based on the periods of pension insurance, may choose to be reimbursed if they decide not to continue working to complete their contributions history if they have a contribution period of less than 10 years which is needed to receive a personal pension.
- Insured employees or self-employed workers who have overpaid for their contributions history may claim reimbursement of the surplus contributions in the following cases:
- if they have exceeded the maximum payable as a result of a combination of activities during the course of their contributions history;
- if they are salaried employees while receiving an old-age pension.
In theory, applications for reimbursement can only be made if the person:
- is at least 65 years of age at the time of the application;
- have not benefited and do not currently benefit, in Luxembourg or abroad, from a personal pension based on the periods of pension contributions.
Applications for reimbursement must be submitted by the time the pension is paid, or else rights to it will be lost.
How to proceed
Applications for reimbursement of contributions must be sent by post to the pension fund to which the insured person last contributed.
Before issuing a refund, that pension fund will then calculate the amount contributed by the employee and employer. The total amount is adjusted for the cost of living.
Reimbursement at the age of 65
Incomplete contributions history
If, after the age of 65, an insured person does not fulfil the age condition for the granting of an old-age pension, and has not benefited, in Luxembourg or abroad, from pension payments based on the contribution periods, the contributions actually paid into their account, excluding the part borne by the public authorities, may be refunded to them. After the refund is paid, all rights to benefits are lost.
If the maximum contribution amount is exceeded
Where, after the combination of several activities or benefits for which contributions are required (such as two part-time jobs), the total contribution base of an insured person exceeds the maximum amount payable, the difference is not taken into account when the pension is calculated, but the insured person is entitled to a refund of the overpaid contributions. Applications are generally made per calendar year (one application per year) and must be submitted by the time the pension is awarded. It is therefore advised that you make a one-time request at the end of each year.
Reimbursements in the event of salaried work
If the beneficiary of a normal old-age pension is employed, they are entitled to a refund of contributions paid after the date of their 65th birthday. A refund consists exclusively of the insured person's share of the contributions and is not adjusted by the cost-of-living index. Applications may be submitted each calendar year.
Repayment of reimbursements
Persons who have previously applied for reimbursement of half of the contributions made to their account may reactivate the rights to the un-refunded portion if they have completed a new 48-month contributions period for the mandatory or continued insurance.
They may also pay back the amount of the recalculated reimbursed contributions by submitting an application for repayment of reimbursed contributions to the pension fund to which the applicant last contributed before the reimbursement.
The amount paid back includes the amount of the reimbursed contributions after application of a compound interest rate of 4% per full year, starting from the year following that in which the contributions were reimbursed until the end of the year preceding that in which the contributions were paid back. Social contributions that are paid back are tax deductible as a special expense.
The reimbursed contributions must be settled within 3 months of notification of the decision by the National Pension Insurance Fund, or they will be forfeited.
In case of a dispute, an appeal may be filed with the Management Committee of the National Pension Insurance Fund (Caisse nationale d'assurance pension) within 40 days of the notice of the decision.
The decision of the chairman of the Management Committee may be appealed before the Council of Arbitration of Social Security (Conseil arbitral de la Sécurité sociale – CASS). An appeal may be lodged against the ruling of the CASS with the High Council of Social Security (Conseil Supérieur de la Sécurité Sociale).
All appeals must be made in writing within 40 days of the notice of the decision or the ruling. Beyond that time frame, no appeals are accepted, and the decision becomes final.