Wednesday, May 18

Minister Escrivá anticipates that the ‘baby boomers’ could suffer a “small adjustment” in their pension

With the social pension agreement still hot, signed this Monday, the Minister of Social Security has advanced this morning part of his plans for the next element of negotiation that the Government will address with the social agents: the so-called ‘intergenerational equity index’ . This mechanism, which will replace the PP sustainability factor and is still to be discussed, will mean a “moderate adjustment” for the retirement of the generation of baby boomThose born between the mid-50s and the 70s, José Luis Escrivá has affirmed in an interview on TVE.

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Escrivá explained that the intention of the Executive is that the generation of baby boom, much more numerous with respect to the generation that succeeds it, “assumes some of the effort that must be made during a period of time” in the public pension system.

Until 2048 this ‘peak’ of pensioners is expected, with a less numerous generation of workers, but then this “demographic tension” of the system disappears. The person in charge of the Social Security has specified that Spain does not have an “acute problem of pensions”, reason why it considers that only a “moderate adjustment” will be necessary.

Choose between a “fit” or work “something else”

The Minister of Social Security has explained that the idea of ​​his Ministry, which has not yet materialized or has begun to negotiate with employers and unions, will involve applying “a fairly moderate adjustment” on the pensioner generation of the baby boom.

To questions from TVE about whether this will mean a “decline” in the pension of those affected by the index, Escrivá has answered that not necessarily. “They will probably be able to choose between different options. One can be a small adjustment in their pension, which would be very moderate, or alternatively they could work something more. We have yet to specify,” he replied.

The minister has also responded about the next block of the pension reform, planned for 2022. Escrivá has pointed out that the extension of the period for calculating the pension promised in Brussels within the Recovery Plan will always be accompanied by the possibility of choosing to discard of some years. The minister has pointed out that this reform aims to “take into account new professional careers in which the last few years are not the best, as was the case before.”

An item yet to be negotiated

Union and employer leaders attended Moncloa this Thursday to sign the pension agreement of the first block of the reform with the President of the Government, Pedro Sánchez, in an act that was attended by the vice presidents of the Executive, among others high ranks.

To questions from the media, Unai Sordo (CCOO) and Pepe Álvarez (UGT) have recalled that the generational equity index has not yet begun to negotiate at the social dialogue table and have preferred to focus on the agreement already reached, which recovers the revaluation of pensions according to the CPI, among other measures.

In any case, Sordo has warned that Spain must decide if it wants to maintain pensions equivalent to the current ones for future pensioners, assuming more spending for a few years, in line with what other countries, such as France and Italy, now bear. “The unions think so,” defended the CCOO leader.

Entrepreneurs for their part, headed by the CEOE president, have defended the need to maintain some “sustainability factor” in pensions. If it is not the current legislation of the PP, which is repealed in this bill, another one that fulfills the function of facing the demographic challenge in the pension system in the coming years, has defended Antonio Garamendi.