Escrivá ‘sells’ an increase in the pension base of 0.42% at age 30

An increase in the regulatory base of the retirement pension of less than half a point. These are the calculations that the Ministry of Inclusion, Social Security and Migrations has transferred to employers and unions in the last meeting of the social dialogue table that debates on the second part of the reform of the public pension system. According to the documentation to which La Información has had access, the technicians of the department that directs Jose Luis Escriva estimate that the extension of the computation period for calculating the pension from 25 to 30 years, eliminating the two worst years of contribution, will mean an average increase in the regulatory base of 0.42%.

From the Ministry they informed, at the end of the meeting held this Thursday, that they had provided the negotiators of the employers’ association and the unions with “some figures” on the impact of the proposal for the “adaptation to the new professional careers of the period of calculation for the calculation of the retirement pension. In a statement, Social Security assured that, according to its calculations, “the new system (going from 25 to 28 years, choosing the best 28 out of 30 years for the computation period) better protects the pensions of new entrants in the labor market before less linear careers, increasingly frequent”. Without going into details, the Ministry wanted to give guarantees that the reform will not mean a general cut in benefits, as has been said, but rather an improvement.

This medium has had access to the calculations that the Ministry put on the table. With the extension of the computation period to the best 28 years, the regulatory base –Currently, it is calculated as the quotient resulting from dividing the contribution bases by 350 during the 300 months immediately prior to the month prior to retirement-would rise, on average, by 0.42%. But not only that. Escrivá has verified, after taking account, that the proposed modification would benefit men more than women. Specifically, while their bases would rise by 0.63%, theirs would remain practically the same as with the current calculation, with a slight rise of barely 0.01% on average. For this reason, work is being done, in parallel, on proposals to reduce the gender gap in benefits.

These calculations surprised the social agents. First, because they do not refer to the amounts of the pensions, but to the regulatory bases. And second, because, in any case, they come up against what the Ministry itself reflected in the initial drafts of the Recovery, Transformation and Resilience Plan, where it was recognized that the extension of the computation period for the calculation of the pension would mean a loss of benefits. Although in that report it was qualified that the impact would not be uniform and would depend on the specific characteristics of each contribution race, it was recorded that an average cut of 6.3% in the assumption of extending the period to 35 years and it was quantified that the extension from 15 to 22 years in 2019 affected more than half of the discharges and already meant an average reduction of 3.9%.

Recently, the Bank of Spain has published a study in which it confirms that going from the current 25 years to 35, which was the period initially assessed by the Ministry, would mean a cut in future pensions of 8.2%. The supervisor also points out that the extension of the calculation period, with the possibility of choosing the best contribution years, would harm workers with average salaries, would benefit the lowest payrolls and would have a neutral effect on the most generous ones. According to the governing body Pablo Hernandez de Costhe reform approved in 2011 by the Government of Jose Luis Rodriguez Zapatero It has implied a 5% cut on the amount of benefits for retirees.

political disagreement

In any case, neither the employers nor the unions want to fully assess Escrivá’s calculations because, first of all, they refuse to negotiate a reform that It is not in the recommendations of the Pact of Toledo. Both the CEOE and the CCOO and UGT have asked the minister to directly withdraw the proposal from the table and seek a political agreement. First, in the Government itself, since United We Can have been against a measure that they consider will mean a cut in pensions. And later in Parliament, since most of the groups, and particularly the usual partners of the progressive coalition, have also expressed their rejection of this change in the calculation of the pension.

The other reform that is on the table (the progressive increase in the maximum contribution bases until reaching 30% between 2025 and 2050, compared to the 3% that is proposed to increase the highest pensions) does not seem to prosper in the social dialogue either. . The unions are in favor of companies paying more for social contributions, but employers are flatly opposed and also warn that this approach breaks the principles of proportionality and generational equity that the Government has committed to Brussels to guarantee. “European funds are at stake,” they recall from the business organization. They will continue negotiating at the next meeting, already convened for December 12.

Source: LA INFORMACIÓN – Lo último by

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