LAMAS Working Group 13-14 June 2018 Agenda Item 2.6 Pensions and labour market participation Stylianos.ZACHARIOU@ec.europa.eu

TF2: Module ‘Pensions and labour market participation’ to be implemented in 2023 It is the third round of an ad hoc module focusing on "retirement". The first implementation took place in 2006, the second in 2012. This time it takes the form of a module on ‘Pensions and labour market participation’ to be implemented every 8 years from 2023 in the future LFS under the IESS.

Next steps A revised proposal is now presented to LAMAS for decision on the list of variables to be tested in the period running from September 2018 to March 2019 (in the context of the 2018 grants "LFS quality and breaks"). Based on the test results, a new discussion of the module will take place within TF2 in April 2019. Final LAMAS decision on the list of variables for the 2023 module is planned for June 2019.

Main points of the new TF2 proposal Keep people aged 50-74 as target population Have only 3 submodules: 1. Pension receipt 2. Expected pension 3. Situation around first receipt of old age pension Test a total number of 13 variables.

Main differences from previous proposal The codes of variables PENSTYP1 (Old-age pension) and PROVTYPE (Financial old-age provisions) have been aligned. The number of questions associated with the PROVTYPE (Financial old-age provisions) variable is reduced and only three questions on pension statutory scheme, pension from current/former employer or occupational pension scheme and private pension scheme are proposed. For STATRECE (First statutory old-age pension receipt at statutory age), TF2 is proposing to test two approaches, i.e. focussing on receipt at statutory age (or before/after statutory age) or with/without deduction.

Main differences from previous proposal (2) The PENSSITU (Situation at beginning of old-age pension receipt) variable would remain in sub-module 3 but TF2 recommends moving the associated question to the block of variables on old-age pension. In relation to the answer categories of variable WSTPREAS (Main reason to stop working with the beginning of the old-age pension receipt) which are considered too numerous and too long, it is proposed to go back to the coding of the 2012 module. Finally it is proposed to drop the variable on job satisfaction (and consequently to drop sub-module 4 on working conditions before retirement).

Main differences from previous proposal (3) Three variables are proposed to be added to the testing exercise: PENSSITUB (Situation before beginning of old-age pension receipt) This variable aims to check whether those working just before taking their first statutory old-age pension were working on a full or part-time basis. LMREENT (Re-enter the labour market after beginning of old-age pension receipt) This variable complements PENSSITU and gives information on whether persons that were not working at the time of receipt of first old-age pension (re)entered the labour market afterwards LMENTREAS (Main reason to re-enter the labour market) This variable complements LMREENT and collects information on the reasons for a person to re-enter the labour market while initially not working when first received statutory old-age pension. The answer categories are aligned to those of WCONREAS.

Information to be collected from all persons 50 - 74 Receive an old age pension (PENSTYPE1) Type of pension (PENSTYP1) Age start receiving pension (AGEPENSO) Situation at the beginning of receipt (PENSITU) Receive a disability pension (PENSTYPE2) Age start receiving disability pension (AGEPENSD) Provision for the old age (PROVTYPE) Receive another type of pension (PENSTYPE3) Do not receive any pension

Information to be collected from persons receiving an old age pension Person receives a statutory pension Did they receive it before, after or at statutory age (STATRECE) With or without deduction (STATRECE alternative) Person was working (when started receiving old age pension ) Full-time or part-time (PENSSITUB) Person stopped working (when started receiving old age pension ) Why they stopped (WSTPREAS) Did they re-enter labour market and why (LMREENT and LMENTREAS) Person continue working after receiving an old age pension Main reason they continue working (WCONREAS)

Results of consultation Q1. Do you agree on the proposed target population (people aged 50-74)? Yes 30 78.95 % No 2 5.26 % Don't know 3 7.89 % No Answer 3 7.89 %

Yes 28 73.68 % No 2 5.26 % Don't know 3 7.89 % No Answer 5 13.16 % Q2. Do you agree on the proposed submodule "pension receipt"? Yes 28 73.68 % No 2 5.26 % Don't know 3 7.89 % No Answer 5 13.16 % Q4. Do you agree on the proposed submodule "expected pension"? Yes 26 68.42 % No 4 10.53 % Don't know 2 5.26 % No Answer 6 15.79 %

Yes 30 78.95 % No 1 2.63 % Don't know 0 0 % No Answer 7 18.42 % Q6. Do you agree on the proposed submodule "situation around first receipt of old-age pension"? Yes 30 78.95 % No 1 2.63 % Don't know 0 0 % No Answer 7 18.42 % Q8. Do you agree aligning the codes of variables PENSTYP1 (Old-age pension) and PROVTYPE (Financial old-age provisions)? Yes 27 71.05 % No 4 10.53 % Don't know 2 5.26 % No Answer 5 13.16 %

Yes 18 47.37 % No 5 13.16 % Don't know 8 21.05 % No Answer 7 18.42 % Q12. Do you agree to test two approaches, i.e. focussing on receipt at statutory age (or before/after statutory age) or with/without deduction for the STATRECE (First statutory old-age provision receipt at statutory age) variable? Yes 18 47.37 % No 5 13.16 % Don't know 8 21.05 % No Answer 7 18.42 %

The LAMAS delegates are invited to: take note of the decisions and recommendations made by TF2 in its meeting of April 2018; agree on the proposed: target population; sub-modules (Pension receipt; Expected pension; Situation around first receipt of old-age pension); variables to be tested (a total of 13 variables including three new variables).