Notional insurance time: military service, studies, children — is buyout worth it?

Which periods are recognized

Recognition is not automatic — an application to e-EFKA is required with supporting documents. The application can be submitted anytime, but recognition yields the greatest benefit when done before the pension application.

• Military service time (up to 12 months, after 1/1/2002).
• Study time at recognized domestic or foreign institutions (up to 2 years).
• Vocational training (IEK) time (up to 2 years, under conditions).
• Notional parental leave time (up to 2 years per child, for parents until 31/12/2012).
• Sickness time not covered by the employer.
• Strike time (if contributions weren't paid).

How much buyout costs

The cost is calculated based on the type of notional time and the replacement rate corresponding to insurance years at the time of application. In some cases (e.g. military service for those who served after 1/1/2002) recognition is free or at a reduced contribution.

Study time is the most expensive to buy out. Therefore, before deciding, you must calculate whether the pension increase or earlier retirement justifies the investment.

When it's worth it

The most critical case is when a few months or years are missing for entitlement. There, recognition of notional time may be the only way out.

• When notional time completes the minimum years for entitlement (e.g. 15 years for full pension at 67).
• When it moves the retiree to a more favorable regime (e.g. from reduced to full).
• When the increase in monthly pension exceeds the buyout cost within a reasonable time horizon.

What we check before you decide

• Full insurance record via ATLAS, to see exactly how much time is missing.
• Scenarios with and without recognition — comparison of monthly amount and retirement age.
• Buyout cost vs. expected pension increase over 10–15 years.
• Alternatives: full now with buyout or full later at no cost.

Practical conclusion

Recognition of notional time is a tool — not an end in itself. In some cases it pays off, in others it doesn't. The decision should be made with specific numbers and scenario comparison, not based on generalities.