Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre … Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Part-time work with part-time retirement Towards an alliance between labour law and pensions for the healthy ageing of the workforce? Miriam Kullmann, Maastricht University Marco Rocca, Université Catholique de Louvain & Université de Liège 18 March 2016, Fondazione Marco Biagi

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Menu Retirement policy – Retirement age – “Active ageing” Partial retirement – Definitions – Pros – Cons Conclusions

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Retirement policy Raising retirement age E.g. EU COM, Green paper 2010 “Towards Adequate, Sustainable and safe European Pension Systems” and White paper 2012 “An Agenda for Adequate, Safe and Sustainable Pensions” – 2010: “an increased emphasis on raising effective retirement ages” – 2012: “restrict access to early retirement + link the retirement age with increases in life expectancy”

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Retirement policy Country specific recommendations Area Link between pensionable age and life expectancy Reducing early retirement Pension reform Subtotal Clauwaert, 2015

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Retirement policy Simply raising retirement age  other exits – (Austria) +12% unemployment of affected workers  bridge to pension (Staubli & Zweimüller, 2013)

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Retirement policy Active ageing  increase employment of “older” workers – COM WP 2012: “raising pensionable ages must be accompanied by measures that enable people to stay longer on the labour market through appropriate health, work place and employment measures” Lisbon objectives 2010: 50% employment for 55-64

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Partial retirement COM WP 2012: “developing opportunities for flexible working arrangements, e.g. by combining part-time work and partial pension receipt” “Fourth pillar” (income from work during retirement)

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Partial retirement Definitions: – Phased retirement: gradually reducing working time before retirement – Bridge employment: work after retirement age (generally different job) – Part-time/partial retirement: combining work with partial retirement benefits Before and after retirement age  actuarial neutrality

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Partial retirement Pros: – Avoiding negative effects of abrupt full retirement  adapting gradually to new situation and/or lower income – Free time for care duties without complete loss of income – Social aspects of employment – Retaining skilled workers – Increase labour supply – Improve health of older workers Latulippe & Turner, 2000; Kantarci & Van Soest, 2008, 2013; Fuchs et al., 2006

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Partial retirement Cons: – Partial retirement “by blocks”  disguised early retirement (e.g. Germany ) – Mismatch between employers and employees interests regarding wage dynamics and seniority (flatter vs steeper evolution) – Being “forced” to work for financial reasons after retirement age has a strong negative impact on workers’ well-being Frimmel et al., 2015; Graf et al., 2011; Allen et al., 2004; Dingemans & Henkens, 2014

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Partial retirement Dingemans & Henkens, 2014, 4000 questionnaires at 10 years interval

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Partial retirement Swedish scheme Part-time work + partial retirement (65% of lost income) Changes in replacement rate have a direct impact on take-up: – 1981  50%  from ~18000 demands to ~ ~9000 – 1987  65%  from ~9000 demands to ~14000 Costs

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Conclusions 1.CSR provide clear and direct objectives in terms of pension reforms, while employment (of older workers) objectives are simply stated 2.Health aspects play a major role in predicting the willingness to work until/after retirement age. (Dingemans & Henkens, 2014)  Protecting health (and safety) of workers has positive effects on employment rates

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Conclusions 3.Subsidizing work before/during retirement should not entail derogations from minimum standards of protection (e.g. minimum wages)  avoid the creation of a “low wage” sector 4.Companies have a major role to play in adapting working environments to older workers. However, first we need demand for older workers

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Legal issues Age discrimination – General principle of EU law (Mangold, Kücükdeveci) – Regulations on part-time work are implementing EU law Part-time and equal treatment –  cannot be the ground for applying worse working conditions (save for pro rata principle)

Faculté de droit et de criminologie Institut pour la recherche interdisciplinaire en sciences juridiques Centre de recherche interdisciplinaire "Droit, entreprise et société" - Jean Renauld CRIDES Thank you!