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CERN Pension Fund
This page is for general informational purposes only. It does not constitute financial advice. Always consult a qualified financial advisor and CERN HR for your specific situation.
Overview
The CERN Pension Fund (CERN PF) is a defined-benefit scheme, which means your pension is calculated based on your years of service and salary, not just the contributions made. Membership is mandatory for all CERN staff and fellows. The CERN PF is one of the largest international organisation pension funds, with professionally managed investments backing its commitments.
Contributions
Each month, approximately 10.1% of your salary is automatically deducted as your pension fund contribution. CERN matches this with a contribution of approximately 20.2% -- double your personal share -- bringing the total monthly contribution to roughly 30.3% of your salary. These deductions appear on your pay slip and require no action on your part.
Benefits by Years of Service
Your pension entitlements depend heavily on how long you work at CERN. If you leave with fewer than 5 years of service, you receive a lump-sum transfer value but are not entitled to a pension. With 5 to 10 years, you can choose between a deferred pension (paid when you reach retirement age) or a transfer value to another pension scheme.
After 10 or more years, you are entitled to a pension upon reaching retirement age, with the amount depending on your years of service and average salary. With 15 or more years, you gain full pension eligibility and access to all retirement options, including early retirement with a smaller actuarial reduction.
Retirement Ages
The normal retirement age is 65 for members who joined the Pension Fund on or before 31 December 2011, or 67 for those who joined on or after 1 January 2012. Early retirement is possible from age 50 (pre-2012 members) or 52 (post-2012 members) with at least 5 years of service, though an actuarial reduction applies for each year of advancement.
It is also possible to delay retirement beyond the normal age in certain circumstances, which results in an increased pension. For those approaching the end of their career, options exist for a gradual transition to retirement, including part-time work arrangements before full retirement.
Transfer Value
The transfer value is a lump sum calculated based on your accumulated contributions plus interest, offered to those leaving CERN before reaching pension eligibility. This amount can be transferred to your new employer's pension scheme or to the national pension system of your country. You must decide what to do with your transfer value within 3 months of leaving CERN, after which the payment or transfer is processed.
Pension Calculation
Your pension is calculated based on your years of service and your average salary over the last years of employment. The accrual rate is 2% per year of service for pre-2012 members (with a maximum of 35 years) or 1.85% per year for post-2012 members (maximum 37 years and 10 months). In both cases, the maximum pension is approximately 70% of your final basic salary.
The fund also provides a survivor's pension for your spouse and dependents in case of death, as well as a disability pension if you become permanently incapacitated during your career at CERN.
Leaving CERN
When you leave CERN, the pension options available to you depend on your years of service, so it is important to review all alternatives carefully. You must communicate your choice within 3 months of departure -- no retroactive changes are possible after this deadline.
It is highly recommended to obtain professional financial advice before making any pension decision. The tax implications of receiving a lump sum versus a periodic pension can be very different depending on your country of residence, and making an informed choice can have a significant impact on your long-term financial wellbeing.
Practical Tips
Check your pension estimate on the CERN HR portal regularly to plan your future. Pay close attention to years-of-service thresholds when considering career moves -- the differences between 4 and 5 years, or between 9 and 10 years, are particularly significant for your pension entitlements.
Get professional financial advice before leaving CERN, especially if you have more than 5 years of service. Make sure you fully understand the implications of choosing a transfer value versus a deferred pension before making your final decision.