Escrivá and social agents will negotiate the increase in the maximum pension base

The Government and the social agents resume this Monday the negotiation of the next block of the pension reform, where they enter, among other issues, the increase in the maximum contribution bases of the system and the computation period for calculating the retirement pension. After closing a first block of reforms in July last year and once the change in the self-employed regime (RETA) was completed, the Ministry of Inclusion and Social Security sat down again with employers and unions looking for a deal that allows meeting the two milestones pending and committed to Brussels for this year in the Recovery, Transformation and Resilience Plan.

These are basically two reforms included in the so-called component 30 to guarantee the purchasing power of pensions and ensure the financial sustainability of the system: the “adaptation to the new professional careers of the computation period for calculating the retirement pension” and the “adaptation of the system’s maximum contribution base”.

The objective of the Government, according to consulted sources, is that all be finalized before the end of the year and that regulatory changes are processed in the form of a bill, which further complicates deadlines. From the Ministry of Inclusion and Social Security they insist on the need for the pension “better reflect the working life of the worker and attend to the reality of a labor market with more interruptions and gaps”. This could be translated, according to social dialogue sources, into some proposal that entails the increase of the period the possibility of being able to discard some years. Together with these two great milestones, Pending aspects of the first block of reforms are still on the table, recall sources from employers and unions who, as usual, sit down again with distant positions.

The opposition of the trade unions

Since the unions have shown a firm rejection of the extension of the calculation period for the calculation of the retirement pension that, after the last reform agreed in 2011, reached 25 years in January 2022. The general secretary of the UGT, Pepe Álvarez, was blunt this week regarding the increase in the computation period for calculating the pension: “We have ended up placing it at 25 years in 2021, we have to see what effect it has on the system”, he left Sure. This point is also a source of conflict between the two government partners with the strong opposition of Podemos to extend this period, a measure that entails for the majority a cut in pensions and that, as they explained to Efe from the UGT and CCOO, parliamentary support must also be assured to carry it forward.

Regarding the other major issue of the reform, the gradual increase in the maximum base, employers and unions expect Inclusion specify periods and rhythms of this rise that aims to provide more income to Social Security, as well as how it will be matched with an increase in the maximum pension. For CCOO and UGT it is “fundamental” to act on the maximum bases, while the employers will sit at the table to negotiate that said increase goes hand in hand with another of the maximum pension, something that the unions would accept but not of equal intensity.

From the union led by Unai Sordo, they explain that, before opening this second part of the reform, they will demand that the Government complete two key pending aspects of the previous block: the contribution of interns and the treatment of leaves due to temporary disability in the discontinuous fixed. And they point out several more issues that the union will raise, such as the increase in minimum pensions, the development of the Social Security Agency or a unified registry of de facto couples for access to the widow’s pension.

In addition, both unions will ask the Government to extend the relief contract to all sectors under the terms currently in force for the manufacturing industry, to promote the hiring of people who replace those who access partial retirement. “Its validity ends in 2022 and it is absolutely necessary to renew it and include all groups,” said Álvarez. Another issue that the Ministry of Inclusion could put on the table is a eventual review of the Intergenerational Equity Mechanism (MEI)which was agreed almost a year ago with the unions and which implies an increase in social security contributions over the next ten years.

Source: LA INFORMACIÓN – Lo último by

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