Tuesday, February 27

Social Security will present its reform of the years of computation of the pension at the beginning of September

New chapter of the pension reform. The Minister of Social Security, José Luis Escrivá, announced this Friday that “at the beginning of September” his Ministry will summon the social agents to present their proposals for the reform of the years of computation of the pension. The measure, within the second block of the pension reform, is one of those that has generated the most controversy in the past, inside and outside the coalition, due to the possibility of extending this period.

The Ministry’s proposal will include “several possible combinations”, the minister has indicated in an interview on Al Rojo Vivo on La Sexta. Among them is the extension of the calculation period, which has limited only certain people, but also allows the worst years to be excepted from the calculation and a more favorable revision of the contribution ‘gaps’ (years without working).

The revision of the years of computation of the pension is within the Recovery and Resilience Plan after the pandemic, and is designed for the “new realities” of less linear professional careers, “especially for those people in whom the last years of working life are not exactly the best”, recalled Minister Escrivá.

“Various combinations” possible

The person in charge of the pension reform has explained that there are several open options. “To address this problem [de las nuevas realidades laborales]we have several levers on which we can operate”, José Luis Escrivá has maintained.

“One is to extend the period for these people, because their last years are not the best, now the last 25 are counted. But at the same time that this period is extended, it is possible, and we are working on that, for example, to make a better treatment of the gaps in which it has not been quoted. Or it can be allowed, as is done in some other country, for a person to exclude their worst years from the calculation”, explained the minister.

“There are different combinations to address this problem, which is a reality. We have estimated that 30% of people no longer have those linear careers that existed before, which went from less to more”, from worse to better working conditions, Escrivá has maintained.

A controversial reform

The reform of the pension calculation period in the past has confronted the partners of the government coalition over the proposal by the Executive to include an increase in the years to calculate the retirement pension up to 35 years in the agreement with Brussels. Finally, that specific amount was not included in the Recovery Plan, but mention is made of the “extension” of the calculation period.

Considering more years to calculate the future pension may favor some people, such as the unemployed at the end of their working life, but also harm others, such as women according to some experts. On average, the estimates point to a reduction in the future pension, if other additional measures are not taken (such as the possibility of exempting years, which is being considered).

Now, the reform of Minister Escrivá on these years of computation must be finalized. One of the keys is why these “new realities” of the labor market are understood. If the measure only applies to certain people who benefit from the change, as José Luis Escrivá has indicated in the past, or if it is something more general.

According to the declarations made this Friday by Minister Escrivá, the specification of his proposal will be presented to the majority unions and employers at the beginning of September to start negotiating. The measure must be approved before the end of the year to meet the deadlines agreed with the European Commission.