Approved the first part of the pension reform: taxes to hold the system and adjustments of up to 21% in prejubiliations

The first council of ministers after the holiday paron has approved the bill with the first measures to reform the pension system. With this new regulation, t

Approved the first part of the pension reform: taxes to hold the system and adjustments of up to 21% in prejubiliations

The first council of ministers after the holiday paron has approved the bill with the first measures to reform the pension system. With this new regulation, the pension revaluation index is canceled, so the CPI will be weight again in the calculation of pensions. Thus, the revaluation of the benefits will be known in December and will be applied in January.

Isabel Rodríguez, Minister of Territorial Policy and Spokesman of the Government, explained at the Press Conference after the Council that the reform is framed in the current recovery, the Pact of Toledo and the Resilience Plan: "Of this recovery could not be left out of the Pensioners ".

"These measures come to guarantee the purchasing power of pensioners," which remained in uncertainty after the 2013 reform, said Rodríguez. This reform added, it will last in time to give security. "From now, no pensioner will have to worry about his pensions: they will always be able to revalue and, in case the CPI is negative they will remain with the previous year," he added.

The reform will enter into force in 2022, after its processing, and may be reviewed again by 2027. In any case, it is expected to have a cost of approximately 2.5% of GDP over the next 30 years.

"From now, no pensioner will have to worry about his pensions: they will always be able to revalue and, in case the IPC is negative they will remain with the previous year," Gonzalez said.

The reform will also be adjusted the reducing coefficients for prejubiliations with various measures aimed at which labor careers are extended. In this way, the actual retirement age (around 64 years old) would approach legal (66 years). By delaying effective age, expenses are saved in the system, as quotes continues and do not pay pensions.

Social Security, in fact, considers that half the cost that will have indexing the IPC in the pensions will be compensated precisely with this retirement delay. Delaying a year Retirement will mean receiving an additional 4% in the pension, while advancing it will have a monthly penalty and will affect those who retire two years before time. The adjustments in prejubilings could come to assume cuts up to 21% in the pension.

In this sense, Rodriguez stressed that a check of up to 12,000 euros per year can be obtained, that additional percentage or a combination of both formulas. As a novelty, pensioners of passive classes are going to have the same regularization in terms of revaluation and incentives in the delay of retirement as the rest of pensioners. In any case, all these measures must be complemented by the reforms of the second phase.

Updated Date: 24 August 2021, 07:48

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