• Government: Pedro Sánchez trusts pensions to a 'hawk' of spending control
  • Social Security: Pedro Sánchez applies the 0.9% rise to pensions but keeps the salary of civil servants frozen

José Luis Escrivá has a primary objective in his mandate at the head of the Ministry of Social Security. As complex as transcendental for current generations but also for future ones. It is, as he himself pointed out during his inauguration, to "quickly close" the bulky deficit that drags the public system while pensions remain linked to the CPI.

And to address this task, the former president of the Independent Authority for Fiscal Responsibility (AIReF) has a model that he already drew from his previous position and who also pointed out that same first appearance as minister. Its plan includes tightening retirement, encouraging the arrival of foreign people of working age and "reflecting" on private pension plans .

The first part of what could be called the Escrivá model was widely exposed and claimed by the AIReF. In the opinion that the agency presented last year, it was openly proposed to " modify the requirements for access to the pension to encourage the increase in the effective retirement age " and increase " the career of calculating the pension beyond 25 years ".

That is, try to keep workers active beyond the age of 65 and include in the calculation of benefit years in which, presumably, workers will have received less and, therefore, will be entitled to a smaller pension.

With regard to immigration, the new minister has always been an advocate of the need to encourage and facilitate the arrival of foreign workers, immigrants of working age, whose contributions help increase the income of the system. The fact that the new Ministry is called Inclusion, Social Security and Migration only affects that line of action, and Escrivá already made clear in his first intervention that it is necessary to move forward "so that the migratory flows that arrive are those that Spain needs in the future, with a consistent immigration policy based on the long term . "

Business plans vs. private funds

And about the complementary pension plans, Escrivá said that it is necessary to "reflect" on the role of these products in the essential reform required by Social Security. The minister did not delve into this line of action, but he did give an important clue by stating that the agreements that were very close to crystallizing in the Toledo Pact are a "very good starting point" to initiate the reform of the system. And in those agreements there was a clear inclination to favor business plans to the detriment of private funds that are contracted with financial entities. .

In addition, the Government of Sanchez - and even more we can - has always shown a certain rejection of the tax advantages enjoyed by private plans . So much so that he commissioned the Fiscal Authority itself a study on the impact of these exemptions, a fact that already represents a clear sign that the Executive wants to address the tax benefits of these products.

Other proposals that AIReF, a markedly presidential organization, launched during the mandate of Escrivá are to raise contributions for the payment of pensions "at the expense of those assigned" for unemployment benefits ; or "the assumption by the State of certain expenses that now support contributions, such as, among others, the operating costs of Social Security"; or

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  • Social Security
  • José Luis Escrivá
  • Pensions

Government Pedro Sánchez trusts pensions to a 'hawk' of spending control

Minister of Social Security Escrivá promises to close the system deficit, link pensions to the CPI and promote migratory flows

According to FedeaThe "strong" moderation of wages is the factor that most deteriorates pensions