Before considering a partial retirement employment arrangement, employees should obtain detailed information about their personal insurance history and pension entitlement from the relevant pension insurance provider.

The employee and employer should then discuss the most suitable employment model for both parties. At this stage, the employer can already apply for the employment agency to check the requirements.

The previous weekly working hours are halved by means of a contractual agreement. This is usually done by amending the employment contract accordingly. The agreement must be drafted in such a way that the partial retirement lasts at least until the earliest possible date on which the employee can claim an old-age pension. The pension insurance provider will advise on whether a reduced pension is also possible.

Benefits under the Partial Retirement Act are paid by the relevant employment agency upon written application by the employer. There is a two-stage application procedure at the Employment Agency for claims for reimbursement of benefits to the employer:

Application for recognition of the requirements
In this procedure, the employment agency checks whether the employee and employer meet the requirements for funding.

If the vacant position in the block model is not refilled until the start of the release phase, the employment agency will also decide in advance, at the employer's request, whether the employee belongs to the group of older employees who are eligible.

Application for reimbursement of benefits
If it is certain that the requirements are met and the position will be filled again, a written application must be made for the benefits to be paid.

At the employer's request, the Employment Agency will decide whether the conditions for the provision of benefits are met. The employer is required to have actually filled the required position.

End of partial retirement
Partial retirement ends when the contract expires without the need for notice of termination. After the agreed duration of partial retirement, the pension should be approved. After partial retirement, the employee can then retire directly.

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