The Minister of Inclusion, Social Security and Migrations,

José Luis Escrivá,

said this Thursday that the new intergenerational equity mechanism that will replace the sustainability factor will produce

a "moderate adjustment" on the pension of the so-called '

baby boomers

'

.

Escrivá, in statements to TVE collected by Europa Press, explained that the pension agreement reached with the social agents defines in general terms what this mechanism is, which has

yet to be specified

, for which the parties have given a deadline until on November 15.

Once ready, the idea is to introduce it into the reform through an amendment to the bill.

The minister explained that the sustainability factor, introduced in the 2013 reform and eliminated in the pension agreement that the Government and social agents will sign today at the Moncloa Palace,

was "poorly defined"

because it linked pensions to the increase of life expectancy, affecting all future pensioners and also indefinitely.

Escrivá has pointed out that the problem of sustainability of pensions is "very concentrated temporarily" in the generation of the so-called '

baby boomers

',

those born between the end of the 50s and until more or less the 70s.

Thus, what, According to Escrivá, the new intergenerational equity mechanism will make this generation, which is "wider",

assume "some of the effort" that must be made to moderate pension spending

during a specific period of time.

"It is a fairly moderate adjustment. They will not see their pension reduced, they

will be able to choose between a small adjustment in their pension or alternatively they could work something else

. We have yet to specify the details," the minister explained.

Escrivá has indicated that in the pension agreement the problem of life expectancy is addressed by ensuring that the effective retirement age approaches the legal age and also with the gradual increase of the legal retirement age up to 67 years included in the reform of 2011, according to the Europa Press agency.

EXTENSION OF THE CALCULATION PERIOD

The minister has also referred to the extension of the pension calculation period, which will be addressed next year, in the next block of the pension reform. This measure, he insisted, must be accompanied by

"greater generosity" in the gaps in the contribution

and the possibility of ruling out the worst years of contributions.

In this sense, Escrivá has guaranteed that the objective of this measure is not to reduce the amount of the pension and that the extension of the calculation period will be linked, yes or yes, to the choice of the best years of contributions.

The minister has also indicated that he hopes that the first leg of the pension reform, which is signed today in Moncloa, reaches Parliament at the beginning of September and enters into force at the end of the year, so that some of its elements, such as the revaluation of pensions with the CPI, may already be in force in 2022.

According to the criteria of The Trust Project

Know more

  • Social Security

  • Jose Luis Escrivá

  • Pensions

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