|Benefit background and assumption for state A and state B|
• In state A, a full (basic) pension of €800 per month is paid to those who have been insured for 40 years (2 % for each year), provided they have been insured for at least 20 years.|
• In state B, a pension of 50 % of the maximum national pension (€1000) plus 1 % for each year is paid to those who have been insured for at least 25 years; the maximum insurance period considered is 50 years.
• The worker has insurance periods of 18 years in state A and 24 years in state B.
• No contracting party can pay a pension under national law solely on the insurance period completed on their territory.
• The aggregated (totalized) insurance periods, however, are 42 years and satisfy entitlement conditions in both states.
• State A calculates the pension on 18 years and therefore pays 18 × 2 % of €800 = €288. In state B, 50 % of the maximum national pension does not depend on the length of periods completed, so from this part, only 24/30 would be payable. State B therefore pays a monthly pension of 24/30 of 50 % of €1000 + 24 × 1 % of €1000 = €400 + €240 = €640. This gives the worker a total pension of €288 + €640 = €928.
Pro rata calculation
• Again, no contracting party can pay a pension under national law but under the totalized insurance periods of 42 years.
• With 42 years of insurance, the theoretical amount for full insurance in state A is €800 and in state B is 50 % and 42 × 1 % of €1000 = €920.
• Prorating these amounts makes state A pay 18/40 × €800 = €360 per month (note that the fraction used is not 18/42 as the maximum insurance period in state A is 40 years). The pension to be paid by state B is 24/42 × €920 = €526 (rounded) per month. This gives the worker a total pension of €360 + €526 = €886.