Countdown to the expected pension system reform see the light. However, it will not be a complete reform, as it is planned to be done in different phases. This is one of the great novelties and the other is that, unlike the reforms of 2011 and 2013, it will lead to practically no cuts for current or future pensioners. Quite the contrary, their benefit will grow at the same rate as prices and new retirees will be able to access a series of incentives that will raise their payrolls if they decide to slightly delay the retirement age, which is the final objective of this rule.
The negotiation between the Government and the unions is already in the final and definitive phase and its official presentation could take place in a matter of days. All that remains is to close some fringes, although one of them is a great stumbling block: the refusal of the Minister of Social Security, José Luis Escrivá, to introduce in this first package of measures the sustainability factor, which for the unions is a red line.
Revaluation with the CPI
Pensions will rise again with prices and retirees at all times will maintain their purchasing power. Specifically, benefits will be revalued at the beginning of each year with the average interannual variation rate of the CPI for the twelve months prior to December of the previous year.
If the average value is negative, the amount of pensions will not vary at the beginning of the year, the new law specifies. Likewise, the Government and the most representative business and trade union organizations will review the effects of the annual revaluation every five years and will notify the Toledo Pact.
Goodbye to the deficit
The State is permanently in charge of a wide range of improper expenses that until now it was assuming the Social Security and that will end their deficit. In the 2021 Budgets, the first transfer has already been made for an amount of about 14,000 million euros and in the years 2022 and 2023 they will be increased by about 8,000 million.
Penalties for early withdrawal
The possibility of retiring early up to two years before will remain and for the vast majority there will be no greater punishment, but on the contrary. With the new scheme of reducing coefficients designed by Escrivá there will be a general improvement for the vast majority of people.
Only those who voluntarily retire 24 or 23 months before the ordinary age and have not contributed above the normal age could be harmed. maximum pension. However, if they delay their retirement for two months, then they will gain from the current legislation. The rest of the groups either come out improving or they stay the same.
Thus, those who have contributed for maximum bases, above 2,707 euros per month, are guaranteed that in no case will they have a benefit lower than what they would have now if they take early retirement, that is, they will charge at least 2,598 euros per month. In turn, those who have been fired by an ERE this year circumvent this law.
The new disincentive scheme will reduce the worker’s pension – his real pension, not his regulatory base – for each month that his retirement advances, not per quarter, as is the case now. The penalties for voluntary early retirement will range between 2.81% and 21%, a larger cut than the current one, which varies between 1.6% and 16%.
However, fewer will access the voluntary early retirement, since in this reform the groups of those who enter through the involuntary one are expanded, who enjoy penalties in many cases softer than the voluntary one and also can withdraw up to four years before the legal age.
Practically all causes for dismissal enter here and all those who are collecting the subsidy for those over 52 years of age may also be eligible, even if it is for disciplinary dismissal. Its reducing coefficients will range between 30% for those who retire four years before ordinary age and 0.5% for those who do so one month earlier.
On the contrary, the Government will reward those who postpone retirement with greater incentives than now. Thus, you will deliver a check of up to 12,060 euros for each year of delay above the legal age. This is the maximum that the person who has contributed more and has worked for more than 44 and a half years can receive, while the minimum will be 4,786 euros.
Instead of this incentive, they will also be able to opt for an additional percentage of 4% of their pension for each year of higher contributions. Or by a combination of both: one part with a check and another with an increase in your benefit.
In addition, companies and workers will be exempt from contributing to Social Security for common contingencies, except for temporary disability, once they have reached the minimum age for access to the retirement pension.
It will be allowed to reconcile work and pension from one year after having reached the legal age and within 12 months the existing differences between regimes and special systems will be corrected.
All labor and non-labor practices, regardless of whether the promoter is public or private, must contribute to Social Security within three months.
Social Security Agency
The Government undertakes to create within six months from the entry into force of the law the State Agency for the Administration of Social Security to adapt and modernize the system.
The safeguard clause is approved indefinitely, which allows those who were fired before April 2013 to access retirement with the conditions prior to the 2011 pension reform.
Widowhood domestic partners
The widow’s pension will be reviewed within six months so that common-law couples can also benefit.
Forced retirement only if a new worker is hired
The Government finally does not prohibit forced retirement by agreement, as it originally intended, but it does toughen it up. Thus, companies can only force one worker to retire from 68 years. In addition, for this they will have to meet a series of requirements, including now that they have to hire at least one new employee to relieve him indefinitely and full time, as specified in the law.
However, the rule establishes an exception to allow forced retirement at the time the ordinary age is reached in certain sectors, those in which there is a gender gap. Specifically, in activities in which the number of employed women workers is less than 15% of employed men, such as construction. And in this case it is required to hire a woman.
The agreements that have this clause may continue to apply it three years after its validity ends.