The latest pension reform takes shape. The general secretary of UGT, Pepe Álvarez, has advanced the PP’s support for the latest pension reform, which includes measures to promote partial and flexible retirement, collecting salary and pension, as well as the relief contract formula used by the industry. “I want to thank the PP for, beyond other issues in relation to this matter, it has committed to effectively supporting the latest pension agreement,” Álvarez explained in his speech.
From Genoa they consider that the content agreed upon by the social dialogue in the summer is in line with what the PP defends. However, popular sources still do not reveal the meaning of the vote of the popular formation in the Congress of Deputies. The PSOE needs a simple majority in the Lower House. Thus, they neither confirm nor deny the announcement revealed by the union leader in the Confederal Commission of the union held in Barcelona.
Partial retirement reform with relief
The pact, signed in the summer, includes measures to make salary and pension compatible through the different retirement modalities. One of them is the extension of partial retirement with a replacement contract to the rest of the sectors with a validity of four years. This legislation is specific to the manufacturing industry, and would now be expanded to more sectors.
The pact agreed in summer extended from two to three years the time that partial retirement can be used (from age 62) for workers who have 33 years of contributions and six years of seniority in the company. It maintains the possibility of reducing the working day up to a maximum of 75% in the last two years of partial retirement and a new section is incorporated that allows a reduction of 20% and up to 33% in the first year. The replacement must be a worker with an indefinite, full-time contract.
The contribution of the company and the partial retiree will increase progressively in the following terms: 40% in 2025; 50% in 2026; 60% in 2027; 70% in 2028 and 80% in 2029, according to the text. In exchange for benefiting from this tool, the company must have at least 75% permanent contracts.
The urgent route: last resort
The Government already approved last year ‘in extremis’ the one-year extension of this type of retirement, which now runs the risk of falling into limbo. Every year, partial retirement with relief is extended with the widespread support of political groups, including the abstention of the PP.
Right now there are two scenarios on the table: an extension of the current legislation or accelerate the process of the recent reform with an urgent royal decree to solve a measure that is essential for companies and unions.
He parliamentary process It goes first to Congress, with the presentation phase, the commission and the plenary session; and then to the Senate, where he follows the same path. Once this law is processed, if the Executive manages to move it forward, the new regulation would replace the extension of the current legislation that is being reformed.
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