Buyback of years of study for public service retirement

The redemption of years of study consists of to pay contributions voluntarily so that your years of study in higher education are taken into account for retirement.

The periods of study which may be redeemed must have been completed in one of the following institutions:

• Higher education institution
• Higher Technical School
• Graduate school
• Preparatory class at a major school
• High school post-bachelor class.

These periods of study must have given rise to a diploma.

Admission to an advanced school or preparatory class for an advanced school is equivalent to obtaining a diploma.

Periods of higher education completed in one of the following countries may also be redeemed:

• Countries of theEuropean Economic Area
• Switzerland
• Country linked to France by a international convention on social security.

You must be at least 20 years of age and under 60 years of age on the date of your request.

You must not have applied for your retirement pension.

You can buy back from 1 to 12 quarters maximum.

You can only buy back one whole number of quarters.

Any study period of 90 consecutive days is considered to be equal to 1 quarter.

Taking into account your years of study can not lead to validation more than 4 quarters per year.

So, for example, if you acquired 1 term of pension insurance as part of a summer job in a year of study, you can buy back only 3 quarters of study for the year in question.

You have 3 redemption options.

To understand what these 3 redemption options are, you need to understand how your retirement pension is calculated.

Your retirement pension is calculated based on 3 elements:

1. The gross index processing that you have held for at least 6 months on the date of your retirement. If you work part-time before retirement, the amount of your retirement pension is calculated on the basis of your full-time index salary.
2. The rate of your pension fixed at 75%.
3. Your number of liquidatable pension insurance quarters in relation to the number of quarters of pension insurance required to qualify for a full rate pension.
   Liquidatable quarters are the contributory quarters and possibly free quarters (called bonuses). Contributed quarters are taken into account for their actual duration if you worked part-time except in the case of part-time work under the law or if you overcontributed (i.e. if you contributed as if you were working full-time).
   The pension is granted at a full rate if you retire before age 67 with a set number of pension insurance quarters (this number varies depending on your year of birth) or if you retire at age 67 (regardless of the number of quarters of your pension insurance).

Your pension is calculated as follows:

Pension = Gross index salary x 75% x (Your number of fundable quarters / Number of pension insurance quarters required to qualify for a full rate pension)

For example, if you were born in 1964, you must have 171 quarters of pension insurance to qualify for a full-rate pension.

When you buy back study quarters, you have the choice between the following 3 options:

• Redeem quarters that will be counted for the calculating your number of pension insurance quarters
• Redeem quarters that will be counted for the calculating your number of liquidatable quarters
• Either buy back quarters that will be taken into account at a time for calculating your number of pension insurance quarters and for calculating your number of liquidatable quarters.

Before applying for a buyback, it is recommended that you simulate the cost of the buyback based on the option you choose using the following simulator

State Pension Service: Simulator for calculating contributions for the redemption of years of study

The amount of contributions depends on:

• Your age at the date of your application
• Your gross index processing on the date of your request
• The redemption option chosen.

One abatement flat rate allows you to redeem a maximum of 4 quarters at a lower price depending on the age at which you make your redemption request. This age may not be less than 30 years.

Depending on your public service of origin, the process for requesting the redemption of your years of study differs:

If your buyback request is eligible, your pension fund will send you a redemption proposal within 4 months of receipt of your request.

The proposed takeover shall include:

• The amount of the payment to be made for each quarter that can be taken into account for each of the 3 possible purchase options
• The total amount of payments to be made
• A proposal for the staggering of payments.

Payment of the contributions due shall be made in one single installment if it relates to the taking into account of a single quarter.

If the payment is made over several quarters, it may be made in several installments up to:

• 3 years when the application covers 2 to 4 quarters
• 5 years when the application covers 5 to 8 quarters
• 7 years when the application covers 9 to 12 quarters.

From the receipt of the purchase proposal, you have a three-month period for reply.

You must specify thepurchase option chosen and if you wish to benefit from the proposed installment schedule.

The price and purchase option become final from 1^er payment made within 6 months of your acceptance.

If your contributions are staggered over more than one year, the amount outstanding shall be increased each year.

Payments shall be suspended and the deferral period is prolonged especially during periods when you are placed in one of the following situations:

• Sick, long-term or long-term leave when you are no longer paid full salary
• Family Solidarity Leave
• Availability
• Parental Leave
• Parental leave
• Caregiver leave.

If you do not respond to the purchase proposal or do not make the payment on time, you must wait at least a year before you can reapply for a purchase.

If you decline the proposal, you can resubmit an application immediately.

You can formulate multiple redemption requests up to 12 quarters. A new application shall only be possible if the full contribution due under the previous application has been paid.

At any time, you may decide to prepay the balance of the outstanding contributions.

The amount of your contributions is deductible from your gross taxable income.