Chapter III. Qualifying conditions for old-age benefit

74. The award of old-age benefit is usually contingent upon two main conditions: pensionable age (Endnote 1) and the qualifying period for entitlement to benefit. As will be seen in Chapters IV and VI, the award or rate of benefit may also be conditional upon a means test or retirement from gainful activity.

I. Pensionable age

75. There are a number of considerations involved in fixing the age at which a worker becomes entitled to old-age benefit. One is that once a worker has reached a certain age, his contribution to working life has earned him the right to a rest; this concept of compensation for services rendered and the right to rest underlies the pensions originally granted to public servants and military personnel. Another approach, adopted in setting up the first pension insurance scheme, (Endnote 2) is based on a presumption of invalidity: at a certain age, a worker's physical and mental capacity are thought to be reduced, so that it would be unfair to compel him to continue his occupational activity. Other factors influencing the fixing of pensionable age by legislation are demographic, economic and social criteria, such as the average level of ageing of protected persons, the structure by age of the population, and the cost of financing pensions. The approach to age is increasingly influenced by the idea that a worker who has reached a certain age may freely choose the time at which he retires from working life within a given period and in a gradual manner; this is reflected in provisions introducing a degree of flexibility in pensionable age and those allowing partial retirement.

1. International standards

Maximum pensionable age

76. Under Article 26 of Convention No. 102 and Article 15 of Convention No. 128, the contingency covered is survival beyond an age prescribed by or in virtue of national legislation, which shall not be more than 65 years. The wording of these provisions allows States to fix a lower age.

77. Both Conventions, however, contain a flexibility clause allowing a higher age than 65 years to be fixed, in certain conditions, for special reasons. Thus, Article 26, paragraph 2, of Convention No. 102 stipulates that a higher age may be fixed by the competent authority "with due regard to the working ability of elderly persons in the country concerned". It is interesting to note that the text drafted by the Office following the first discussion at the Conference allowed a pensionable age of more than 65 years on condition "that the number of residents having attained that age is not less than 10 per cent of the number of residents under that age but over 15 years". (Endnote 3) This draft was intended to allow for the situation in countries where life expectancy is high and a large proportion of elderly people may therefore be considered fit for work. The version which was finally adopted by the Conference, however, opted for a greater degree of flexibility by eliminating this statistical criterion, retaining only the underlying idea of the working ability of "elderly persons". (Endnote 4)

78. The idea that an increase in the pensionable age should be based on criteria supported by statistics was taken up again in the drafting of Convention No. 128. Article 15, paragraph 2, of that Convention provides that a higher age than 65 years may be fixed by the competent authorities "with due regard to demographic, economic and social criteria, which shall be demonstrated statistically". The aim of requiring such criteria to be demonstrated statistically was to ensure that exceptions were founded on objective criteria and thus make the supervisory bodies' work easier. (Endnote 5) The criteria to be demonstrated statistically could include, for example, the life expectancy of the population and the proportion of elderly persons at work.

Lowering of pensionable age

79. Article 15, paragraph 3, of Convention No. 128 provides that if the prescribed age is 65 years or higher, it shall be lowered, under prescribed conditions, in respect of persons who have been engaged in occupations that are deemed by national legislation, for the purpose of old-age benefit, to be arduous or unhealthy. The lowering of pensionable age should be understood as meaning a reduction with respect to the age of 65 years fixed by the Convention and not with respect to a lower age which may be prescribed by national legislation. (Endnote 6) This provision, the social significance of which was emphasised during the preparatory work on the Convention, (Endnote 7) is intended to ensure additional protection, through a more favourable system, to persons employed on arduous or unhealthy work. When the Convention was being drafted, it was pointed out that the legislation containing this type of provision based preferential treatment on the assumption that, on average, the working capacity of persons employed in such conditions diminishes sooner than that of persons in other occupations; the contribution made by such persons to the national economy in physically arduous conditions is also taken into consideration. (Endnote 8)

80. The wording of Article 15, paragraph 3, allows a considerable degree of flexibility in the application of the principle that, where the pensionable age is 65 years or higher, it shall be lowered for persons who have been employed in arduous or unhealthy work. Firstly, the provision leaves it to national legislation to determine the occupations which may be considered as arduous or unhealthy for the purpose of old-age benefit, in the light of all the relevant circumstances. It is therefore for the competent authorities to assess and evaluate jobs and occupations in order to determine which jobs should be considered as arduous or unhealthy within the meaning of the Convention, specifying the criteria applied, where appropriate. Secondly, the provision also leaves it to the competent authorities to prescribe the conditions under which persons engaged in arduous or unhealthy work would be entitled to benefit at a lower age than the normal pensionable age. (Endnote 9) While States are allowed a fairly wide discretion in applying Article 15, paragraph 3, of Convention No. 128, they should nevertheless proceed in good faith, taking into account the objectives underlying this provision.

81. As the Committee has recalled in specific comments addressed to some governments which have ratified the Convention, the power allowed to national legislation of prescribing the conditions for awarding old-age pensions before the age of 65 years to persons who have been employed on arduous or unhealthy work should be exercised in accordance with its objective, which is to establish a more favourable scheme for this category of workers by allowing them, inter alia, to draw an anticipated old-age pension, of which the rate and qualifying period must conform to Articles 17 and 18 of the Convention. It should be pointed out here that Paragraph 6(a) of Recommendation No. 131 provides that "with a view to protecting persons who are over a prescribed age but have not attained pensionable age Members should provide benefits, under prescribed conditions, for ... persons whose unfitness for work is established or presumed". The possibility of anticipating pensionable age in the case of unfitness for work is broader in scope than the reference to arduous or unhealthy work, since it allows the award of an anticipated pension without having to establish whether or not unfitness is due to having performed such work. (Endnote 10) When Recommendation No. 131 was being drafted, emphasis was laid on the importance of these provisions for adapting the award of old-age benefit to individual cases of premature ageing. (Endnote 11)

82. Prolonged involuntary unemployment of elderly persons for a period prescribed by legislation is another circumstance which, according to Paragraph 6(b) of Recommendation No. 131, should justify the award of anticipated old-age benefit for persons who are over a prescribed age. (Endnote 12)

83. Lastly, according to the Recommendation, social grounds may also justify either the grant of benefit to categories of persons who have not reached pensionable age (Paragraph 6(c)) or the lowering of pensionable age (Paragraph 7).

Deferment of old-age pension

84. Under Paragraph 18 of Recommendation No. 131, deferment of the claim to old-age benefit or, what amounts largely to the same in practice, postponement of retirement when receipt of benefits is incompatible with the exercise of a gainful activity, should entail an increase in the amount of the old-age benefit, but only in cases where the grant of this benefit is subject to fulfilment of the qualifying conditions of contribution or employment and where this qualifying period has been completed at the normal pensionable age.

2. National situations

85. The national legislation specifies the conditions for entitlement to old-age benefit, and, in particular, the normal pensionable age. This age may vary according to several criteria, such as the nature of the work performed or the occupation, or the sex of the insured person.

General rules

86. In the great majority of countries, the pensionable age (Endnote 13) is 65 years or less. While many countries have fixed the age at 65 years, (Endnote 14) a significant number have opted for 60 years (Endnote 15) or even 55 years. (Endnote 16) Under a number of systems, on the other hand, the age is over 65. (Endnote 17)

87. For certain categories of workers who are often covered by special schemes, such as agricultural workers, members of production co-operatives or self-employed persons, the pensionable age is sometimes different; although it may be higher, it is still most often within the limits provided for in the Conventions. (Endnote 18) Sometimes different age requirements are established for other categories of workers, and they are often more favourable; such is the case, for example, of public servants in many countries, (Endnote 19) as well as seafarers and miners. The latter two categories are often considered as working in arduous jobs and may therefore be protected in the same way as other categories of persons engaged in arduous or unhealthy work. Lastly, under some schemes, the award of old-age benefit is conditional upon the number of years of employment, irrespective of age. Such "long-service" pensions are often provided in addition to pensions awarded upon reaching a certain age. (Endnote 20)

Lowering of the pensionable age according to specific criteria

88. The legislation in many countries provides for a lower pensionable age according to criteria including the nature of certain jobs, the physical condition of the beneficiary and/or his employment status; in addition, a lower age is often fixed for women.

89. Employment on arduous or unhealthy jobs is the oldest and still the most widespread reason for lowering the pensionable age, on the assumption that such jobs entail premature ageing. Many countries have enacted provisions for a reduction of pensionable age on this ground, including countries where the normal pensionable age is under 65 years. (Endnote 21) In a number of countries, some of these jobs are covered by a special scheme with a lower pensionable age than under the general scheme, such as the miners', seafarers' and railway workers' schemes; but the age may also be lowered under the general scheme, which often prescribes lists of arduous or unhealthy jobs. There are a wide variety of provisions concerning the age from which anticipated pension may be granted (most often five years before the normal pensionable age), the list of occupations covered and the length of service required. The reduction of pensionable age often depends not only on the type of occupation but also on the number of years spent in this occupation; the length of the qualifying period frequently decreases in proportion to the degree of unhealthiness or arduousness of the job. Thus, for example, the qualifying period may be shorter for miners working underground than for those employed above ground.

90. The easing of the age requirement is often linked to the concept of unfitness for work; anticipated pensions on these grounds are generally awarded up to five years, but sometimes even ten years, (Endnote 22) before normal pensionable age. This type of pension should not be confused with invalidity pensions, for which there is no age requirement.

91. The increasing imbalance on the employment market over the last 15 years has led many countries to lower the pensionable age for the unemployed, not only to protect the elderly unemployed, for whom it is difficult to find alternative employment, but also as a means of combating unemployment alongside other measures such as pre-retirement (Endnote 23) or progressive retirement. (Endnote 24) The information available to the Committee indicates that an anticipated pension is generally awarded up to five years before normal pensionable age after a period of prolonged unemployment, usually on condition that a certain qualifying period has been completed. (Endnote 25) Parallel to the measures lowering the pensionable age in order to protect the elderly unemployed, other measures have been adopted to combat unemployment; unlike the former, these are targeted at elderly workers who have continued to work, encouraging them to retire earlier by offering them an old-age pension, in principle without a reduction in benefit, before normal pensionable age, sometimes on condition that the employer undertakes to replace the retiring worker by a jobseeker. (Endnote 26)

92. Although the instruments make no express provision for a lower pensionable age for women, (Endnote 27) a great many countries, chiefly in Latin America and Europe, recognise the right of women to receive old-age benefit at a lower age than men, (Endnote 28) the difference generally being five years. However, some changes may be observed here. Thus, in one country, for example, pensionable age for single women has been brought up to the general age. (Endnote 29) In other countries, the age for women is being gradually brought up from 55 to 60 years. (Endnote 30) Lastly, a number of countries (Endnote 31) are considering equalisation of pensionable age as part of the application of the general principle of equal treatment between men and women in social security.

93. Pensionable age is sometimes adjusted in view of other criteria based on social considerations or recognition of special services rendered to society. Thus, the age is sometimes lowered for women who have given birth to and raised one or more children (Endnote 32) or for certain veterans or prisoners. (Endnote 33) In some countries, the age is lowered for teachers (Endnote 34) and in another country, for bullfighters and artists. (Endnote 35)

Other adjustments of pensionable age; flexible retirement, progressive retirement

94. In an increasing number of countries, pensionable age is no longer fixed in a rigid manner. In addition to adjustments for the reasons outlined above, other alternatives have been introduced in legislation providing for full pension, or reduced or increased rates of pension. The different alternatives available allow a more individualised approach to retirement age by permitting the beneficiary to exercise a certain choice among a given range of possibilities. (Endnote 36)

95. Under some schemes, long periods of contribution or employment entitle a worker to old-age pension, often without a reduction in benefit, at a lower age than the normal pensionable age (Endnote 37) or without an age requirement. (Endnote 38) Such measures mainly favour manual workers, who usually start out in working life at an earlier age than other workers; these measures proceed from the same motivation as that of a lower pensionable age for arduous or unhealthy jobs.

96. Often the possibility also exists for insured persons to claim a pension in advance once they have reached a prescribed age, often five years before the normal pensionable age, on condition that a certain minimum qualifying period is completed; (Endnote 39) in this case, the amount of the pension is usually reduced in proportion to the number of years it is drawn in advance of the normal age, which offsets the advantage to a certain extent and may, according to the particular situation, encourage or on the contrary discourage resorting to such action.

97. Some systems, on the other hand, expressly allow insured persons to defer claiming old-age pension beyond the age prescribed by legislation and provide for the amount of the pension to be increased by a coefficient which is generally proportional to the number of years of deferment. These increases, which are the counterpart of the reductions in the event of early retirement, compensate to a certain extent the reduction in the number of years the pension is paid. (Endnote 40) Under some systems, the deferment period is theoretically unlimited, while in others it is only possible up to a prescribed age. Even in countries whose legislation does not provide for a coefficient for the increase of pension if retirement is deferred, old-age pensions are usually granted at the normal age only on request; consequently, if the amount of pension varies in accordance with the length of service, continuing his occupational activity beyond that age normally qualifies the pensioner for a higher pension, as long as the maximum number of years of employment (or insurance, contribution or residence) to be taken into account has not been attained.

98. A small number of countries have recently introduced provisions in their legislation aimed at easing the transition from full-time activity to retirement, by providing for progressive retirement. A partial pension may be paid to persons who reduce their activity and whose age falls between a lower and an upper limit. These schemes offer workers the option of gradually reducing their workload in the last years of their working life so as to achieve a smooth transition to retirement and avoid a sudden drop in their income. This system was introduced by a Nordic country (Endnote 41) some ten years ago, and the example was recently followed by other countries in the region. (Endnote 42) Similar provisions have been adopted by still other countries. (Endnote 43)

II. Minimum qualifying period and maintenance of rights in the course of acquisition

1. International standards

Minimum qualifying period for entitlement to old-age benefit

99. Both Article 29 of Convention No. 102 and Article 18 of Convention No. 128 use the term "qualifying period" to refer to two different matters. On the one hand, Article 29, paragraph 1, of Convention No. 102 and Article 18, paragraph 1, of Convention No. 128 use the term "qualifying period" to refer to a maximum number of years of contribution (30), employment (30) or residence (20) which may be considered in order for the old-age benefit to attain the rate prescribed by the instruments; this subject will be examined in Chapter IV dealing with the form and rate of old-age benefit. On the other hand, paragraph 2 of Article 29 of Convention No. 102 and of Article 18 of Convention No. 128 refer to the minimum qualifying period which may be required for entitlement to old-age benefit. Thus, subparagraph (a) of paragraph 2 of these provisions provides that, where the award of benefit is conditional upon a minimum period of contribution or employment, a reduced benefit shall be secured at least to a person who has completed, in accordance with prescribed rules, a qualifying period of 15 years of contribution or employment. (Endnote 44) It should be made clear at this point that this provision is not intended to make the award of pension compulsory in all cases, but only to guarantee that, where the award of pension is conditional upon a minimum period of contribution or employment, protected persons who have completed a 15-year qualifying period shall be paid a pension at a lower rate than that calculated in accordance with paragraph 1 of Article 29 of Convention No. 102 and of Article 18 of Convention No. 128. (Endnote 45)

100. As the Committee pointed out in its general survey carried out in 1961, the reference to "prescribed rules" leaves it to a certain extent to national legislation to determine the conditions in which the qualifying period should be completed, subject to the reservation that it should not exceed the length prescribed by the instruments under consideration. (Endnote 46) Moreover, although the Conventions refer to the qualifying period in terms of years, national legislation may refer to another unit of time, such as a quarter, month, week or day; what is essential is that these different units are used in such a way as to correspond to the minimum number of years required by the Conventions, taking into account methods of conversion stemming from national legislation. (Endnote 47)

101. It is worth noting that both Article 29, paragraph 2(b), of Convention No. 102 and Article 18, paragraph 2(b), of Convention No. 128 lay down more flexible rules "where, in principle, all economically active persons are protected". (Endnote 48) Obviously, this requirement is met if the system of protection covers the entire population. (Endnote 49)

102. It should also be pointed out that the reduced benefit must necessarily be a periodical payment as provided in Article 28 of Convention No. 102 and Article 17 of Convention No. 128. (Endnote 50)

103. Lastly, under Paragraphs 20 and 21 of Recommendation No. 131, periods of incapacity due to sickness, accident or maternity and periods of involuntary unemployment, in respect of which benefit was paid, as well as periods of compulsory military service, should be assimilated, under prescribed conditions, to periods of contribution or employment in calculating the qualifying period.

Maintenance of rights in the course of acquisition

104. Whether by choice or because they are compelled to do so, workers in most countries increasingly find themselves moving from one job to another during their working life. Where these jobs fall under different social security schemes (for example, the general scheme and the public servants' scheme), the persons concerned face the risk of losing their right to pension -- particularly if the entitlement to pension is conditional upon a fairly long qualifying period which has not been completed in any one scheme -- unless appropriate measures are adopted to ensure co-ordination between schemes and thus guarantee the maintenance of pension rights. A related problem may arise even if a worker does not transfer from one scheme to another, for example, if he loses his job for a lengthy period, or even until the pensionable age prescribed by national legislation, or ceases for any other reason to engage in a covered activity and consequently to pay contributions under the social security scheme. This could be the case, for instance, if under the legislation in force rights resulting from completion of past periods lapse after a prescribed time following coverage by a scheme, or if a certain density of contribution or insurance prior to entitlement to pension is required. This is why Article 30 of Convention No. 128 stipulates that "national legislation shall provide for the maintenance of rights in the course of acquisition in respect of contributory invalidity, old-age and survivors' benefits under prescribed conditions". The term "contributory benefits" is defined in Article 1(j) of Convention No. 128 as benefits the grant of which depends on direct financial participation by the persons protected or their employer, or on a qualifying period of occupational activity.

105. It should be emphasised at this point that the measures referred to in Article 30 mentioned above are those which must be adopted at the domestic level, and not those which might be necessary at the international level in order to ensure that rights in the course of acquisition are maintained where residence is transferred to another country. (Endnote 51)

106. The reference to "prescribed conditions" was included in Article 30 with a view to allowing the determination by the legislation of the methods deemed appropriate for the implementation of the principle of maintenance of rights; such methods might be, for example, a prescribed period of insurance or employment, a prescribed period for the preservation of rights or the choice given to the persons concerned to continue their insurance subject to prescribed conditions, including doing so by means of continuing voluntary insurance. (Endnote 52)

2. National situations

107. Under most schemes, the grant of old-age benefit is conditional upon a minimum qualifying period, which may be a period of contribution, employment or residence, as the case may be. Qualifying periods are often expressed in terms of weeks, months, quarters or years, although some legislation refers to the qualifying period in terms of days. (Endnote 53)

108. In schemes applicable to all residents and paying benefit at a flat rate, entitlement to pension most often depends on habitual residence in the country over a prescribed period, which generally varies between one and ten years. (Endnote 54)

109. Under other schemes, the qualifying period generally takes the form of periods of contribution, insurance or employment. While in a number of countries no minimum qualifying period is required for entitlement to benefit, (Endnote 55) most legislation adopted under the insurance system provides that entitlement to an old-age pension, even at a reduced rate, is conditional upon a minimum qualifying period. This period may be short, (Endnote 56) although most legislation provides for a longer period which does not, however, exceed 15 years. (Endnote 57) Under some systems, however, the period may be longer, even up to 20 years, for example. (Endnote 58) Many schemes in French-speaking African countries require the beneficiary to prove that he has been registered with a scheme for at least 20 years, with a certain number of months falling within a prescribed period preceding the date on which he becomes eligible for pension. (Endnote 59)

110. Under most systems there is a single qualifying period, linked to a single pensionable age. Some, however, provide for several pensionable ages; in this case, generally, the higher the age, the shorter the qualifying period. (Endnote 60) It is worth noting here that in most pension insurance schemes the qualifying period may be completed even after pensionable age has been reached.

111. Some systems require the insured person to reach a certain average number of contributions per year, in addition to a total minimum number of contributions. (Endnote 61) In others, the qualifying period must fall within a prescribed period immediately preceding the pensionable age. (Endnote 62)

112. The minimum qualifying period is sometimes reduced in systems where the pensionable age is lowered for some categories of beneficiary, such as women or persons employed on arduous or unhealthy work. (Endnote 63)

113. In a considerable number of countries, periods other than periods of employment are also contributory or are assimilated to periods of employment, contribution or insurance and, as such, are taken into account in calculating the minimum qualifying period and/or the rate of benefit. Often, however, the legislation stipulates that in order for the minimum qualifying period to be completed, a certain number of contributions must have been actually paid or periods of employment completed. The periods thus taken into account often cover those in which the insured person received social security benefits or other compensation, such as sickness benefit, (Endnote 64) employment injury benefit, (Endnote 65) maternity (Endnote 66) or unemployment (Endnote 67) benefit. In addition, in some countries periods of incapacity in the event of sickness (Endnote 68) or unemployment, (Endnote 69) for example, irrespective of whether benefit was paid for them, are also taken into account, sometimes with certain limitations and under certain conditions. Some systems also take into account periods of compulsory military service, military mobilisation or war, (Endnote 70) periods of study or training or occupational rehabilitation; (Endnote 71) an increasing number of countries also include periods spent raising children and/or assisting a disable person or one requiring care. (Endnote 72) Sometimes periods in which the insured person held an official post or political office are taken into account. (Endnote 73) Some legislation provides that periods of unpaid leave (Endnote 74) or strike action (Endnote 75) are taken into account, as well as certain periods of custody before trial. (Endnote 76) One system also takes into account periods spent on co-operation projects in developing countries. (Endnote 77)

114. The available information also indicates that in the case of an insured person transferring to another scheme, some legislation provides for measures to ensure maintenance of rights in the course of acquisition through a variety of methods. (Endnote 78)

115. The issue of maintenance of rights in the course of acquisition may also arise, although more rarely, where an insured person is only covered by one social security scheme. Indeed, if he stops working before reaching pensionable age, the insured person's rights to old-age benefit will normally be maintained, as long as he has completed the minimum qualifying period required by legislation. Some schemes even contain an express provision to this effect. (Endnote 79) Sometimes, however, legislation in this case lays down certain restrictions on the maintenance of rights in the course of acquisition. (Endnote 80) Moreover, in some countries, a worker is given a choice between reimbursement of his contributions and maintenance of rights. (Endnote 81) It should also be pointed out that the problem of maintenance of rights in the course of acquisition is likely to arise in systems which require all or part of the qualifying period to fall within a prescribed period preceding the date of entitlement to pension. In such cases, the option offered by some systems to continue voluntarily as a member of a scheme may be the first step towards a solution. (Endnote 82)

III. Evaluation

Pensionable age

116. From the available information it is apparent that the normal pensionable age is generally fixed in accordance with the requirements of the Conventions, which specify that this age should not, in principle, exceed 65 years. Pensionable age is generally concentrated between 60 and 65 years, although in some countries it is 55 years, or even lower. A very small number of countries who have ratified either Convention No. 102 or Convention No. 128, have placed the pensionable age above 65 years. The information communicated by the governments of these countries indicates that this age takes into account demographic, economic or social criteria, such as the working ability of persons aged above 65, thus meeting the requirements of Article 26, paragraph 2, of Convention No. 102 and Article 15, paragraph 2, of Convention No. 128. (Endnote 83)

117. Some countries have lowered the general pensionable age, sometimes on condition that certain subsidiary requirements are met. (Endnote 84) While in some cases this decision was taken for essentially social reasons, in others it was also based on economic concerns, with a view to encouraging older workers to retire from working life, thus vacating jobs. One country, on the contrary, has decided to raise the pensionable age gradually from 65 to 67 years, for demographic reasons affecting the financial equilibrium of the schemes. (Endnote 85)

118. Under Article 15, paragraph 3, of Convention No. 128, if the pensionable age is 65 years or higher, the age should be lowered for persons who have been engaged in arduous or unhealthy work. In this respect, the Committee was interested to note that a great many countries, including some where the normal pensionable age is lower than 65 years, have adopted provisions to this effect. However, the Committee points out that some of the countries where the pensionable age is 65 years or higher, do not, according to the available information, appear to have adopted specific provisions lowering the age for persons engaged in arduous or unhealthy work (Endnote 86) or have stated that no such provisions exist. (Endnote 87) Moreover, measures adopted sometimes apply only to very limited categories of workers. Lastly, from the information communicated by some governments it is not always possible to assess whether the early pensions thus awarded to workers employed on work considered to be arduous or unhealthy meet the requirements of Convention No. 128 as to rate and qualifying period. The Committee has addressed specific comments on these matters to certain governments which have ratified Convention No. 128; (Endnote 88) in particular, it emphasised the need for a thorough examination of jobs which should be considered as arduous or unhealthy within the meaning of this provision of the Convention.

119. A considerable number of countries have adopted other provisions for a flexible pensionable age under certain prescribed criteria, in accordance with Recommendation No. 131; these include provisions concerning persons considered to be unfit for work and unemployed persons, as well as those based on social considerations.

120. It is interesting to note that a growing number of countries have introduced possibilities of flexible retirement in their legislation (early retirement, long-service retirement, deferred retirement, gradual retirement). These formulas allow a more individual approach to the age at which a person leaves working life, while attempting to reconcile two different aims: to relieve the employment market and to reduce financial deficits. As regards early retirement for personal convenience, reductions in the amount of pension should not be such as to affect a person's exercise of this option; deferred retirement, on the other hand, will be the more attractive to workers, the higher the increase in benefits offered.

121. The analysis of national situations also shows that in many countries, the legislation provides for a lower pensionable age for women. The question of whether the pensionable age should be different or equal for men and women, regarding which the Conference did not take a stand in adopting the instruments of 1967, is still relevant and continues to elicit discussions. An equal pensionable age is advocated in the name of equality of treatment, including equality in employment and occupation. Some consider that a lower pensionable age for women results in a shorter career, adding to the handicap of a wage which is often lower. Others feel, again in the name of equality, that men are discriminated against if women receive identical benefit under more favourable conditions. Still other arguments are based on economic and financial grounds relating to the equilibrium of schemes. In this respect, it is emphasised that there is a paradox involved in fixing a lower age for women when their life expectancy is statistically higher than that of men and they therefore draw their pensions for a longer time. Advocates of a lower pensionable age for women, on the other hand, contend that the social conditions prevailing in most countries mean that working women still perform most of the housework and family activities such as raising children, which amounts to a double working day. Thus a lower pensionable age for women without reduction of benefit would be only a partial recognition of the unpaid work performed by women in the interests of the family and society.

122. This question, which is currently being discussed in a number of countries, has not yet been fully solved at the national level, if only because of the practical difficulties involved in implementing a principle of this kind. Should the pensionable age for women be brought up to that for men, or should the age for men be brought down to that for women, or should an intermediate age be adopted for both women and men? This is a problem fraught with social, legal, economic and financial implications, and therefore very difficult to solve. Perhaps seeking a more global solution aiming for a flexible system for fixing the pensionable age and a gradual transition from working life to retirement would help to reconcile the different points of view, while taking into account workers' wish to have more leeway in deciding when to retire. (Endnote 89)

123. The Committee wishes to emphasise that the question of equalisation of the pensionable age falls within the broader scope of equality of treatment between men and women in social security, one of the subjects which the Director-General of the ILO intends to submit this year to the Governing Body with a view to including it in the agenda of a forthcoming session of the Conference. (Endnote 90)

Qualifying conditions and maintenance of rights in the course of acquisition

124. The legislation in most countries makes entitlement to benefit conditional upon completion of a minimum period of residence, contribution or employment. If the qualifying period is one of contribution or employment, the legislation, with the exception of some countries, (Endnote 91) secures payment of reduced benefit to a person who has completed a qualifying period of 15 years, in accordance with Conventions Nos. 102 and 128, and, also fairly frequently, after a qualifying period of ten years, in accordance with Recommendation No. 131, some countries even requiring a shorter qualifying period. In addition, in a significant number of countries, various periods other than periods of employment or contribution are credited for purposes of entitlement to pension and/or calculation of benefit, as advocated in the Recommendation.

125. The legislation in several countries requires that part of the qualifying period fall within a period immediately preceding the pensionable age. This requirement for a certain "density of insurance" can hardly be considered as being contrary to the requirements of Article 29, paragraph 2(a), of Convention No. 102 and Article 18, paragraph 2(a), of Convention No. 128, since the wording of these provisions, referring as it does to "prescribed rules" for the determination of the minimum qualifying period, offers a certain amount of leeway to governments. It may, however, give rise to a paradoxical situation in which a person who, overall, has completed a higher number of contributions over his working life, is none the less deprived of benefit on the grounds that he is unable to prove that the required number of contributions have been paid during the prescribed period preceding pensionable age. (Endnote 92) This is why, at least as far as Convention No. 128 is concerned, such statutory provisions may also be examined in the light of Article 30 of this instrument, which provides for the principle of maintenance of rights in the course of acquisition for contributory benefits. In this respect, the Committee would emphasise the importance which it attaches to this provision of the Convention regarding the application of which governments have unfortunately supplied little information.

126. In this context, the Committee notes that, in one country, the requirement that a person be a member of a scheme and covered by that scheme or be in an equivalent situation at the time of the contingency has been abolished. (Endnote 93) In practice, this requirement meant that entitlement to benefit lapsed if a person reached a pensionable age during an interruption in working life or after ceasing to work. In another country, the condition of holding a job at the time of the contingency has also been abolished. (Endnote 94)

127. The question of maintenance of rights in the course of acquisition will also arise if the insured person is covered by more than one social security scheme during his working life as a result of a change in occupation. This calls for internal co-ordination among different provisions of social security legislation which each require completion of a qualifying period. There are different ways of achieving such co-ordination, including adding up periods of insurance and paying proportional benefits under each of the schemes, or transferring rights from one scheme to another. The absence of such measures, in addition to placing the insured person at the risk of losing all or part of his pension rights, also impedes occupational mobility. This problem arises, for example, when a worker leaves the private sector to become a public servant or vice versa, as public servants are very often covered by a special pension scheme. (Endnote 95)

Endnotes

Endnote 2

Endnote 3

Endnote 4

Endnote 5

Endnote 6

Endnote 7

Endnote 8

Endnote 9

Endnote 10

Endnote 11

Endnote 12

Endnote 13

Endnote 14

Endnote 15

Endnote 16

Endnote 17

Endnote 18

Endnote 19

Endnote 20

Endnote 21

Endnote 22

Endnote 23

Endnote 24

Endnote 26

Endnote 27

Endnote 28

Endnote 29

Endnote 30

Endnote 31

Endnote 32

Endnote 33

Endnote 34

Endnote 35

Endnote 36

Endnote 37

Endnote 38

Endnote 39

Endnote 40

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Endnote 42

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Endnote 46

Endnote 47

Endnote 48

Endnote 49

Endnote 50

Endnote 51

Endnote 52

Endnote 53

Endnote 54

Endnote 55

Endnote 56

Endnote 57

Endnote 58

Endnote 59

Endnote 60

Endnote 61

Endnote 62

Endnote 63

Endnote 64

Endnote 65

Endnote 66

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Endnote 68

Endnote 69

Endnote 70

Endnote 71

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Endnote 94

Endnote 95

Cross references
Constitution: Article 19
Constitution: Article 22
Constitution: Article 35