The first Council of Ministers after the holiday break has approved the bill with the first measures to reform the pension system.

With this new regulation, the Pension Revaluation Index is canceled, so the CPI will once again have weight in the calculation of pensions.

Thus, the revaluation of benefits will be known in December and will be applied in January.

Isabel Rodríguez, Minister of Territorial Policy and Government spokesperson, explained in the press conference after the Council that the reform is framed in the current recovery, the Toledo Pact and the Resilience Plan: "from this recovery the pensioners ".

"These measures come to guarantee the purchasing power of pensioners," which was left in uncertainty after the 2013 reform, Rodríguez said.

This reform, he added, will last in time to provide security.

"From now on, no pensioner will have to worry about their pensions: they will always be able to revalue and, if the CPI is negative, they will remain with the previous year," he added.

The reform will enter into force in 2022, after being processed this fall, and may be reviewed again in 2027. In any case, it is expected to cost approximately 2.5% of GDP over the next 30 years.

"From now on, no pensioner will have to worry about their pensions: they will always be able to revalue and, if the CPI is negative, they will remain with the previous year," González said.

The reform will also adjust the reduction coefficients for early retirement with various measures aimed at extending careers.

In this way, the real retirement age (around 64 years) would be closer to the legal one (66 years).

By delaying the effective age, expenses are saved in the system, since it continues to enter contributions and does not pay pensions.

Social Security, in fact, considers that half of the cost that will have to index the CPI again in pensions will be compensated precisely with this delay in retirement. Delaying retirement by one year will mean receiving an additional 4% in the pension, while bringing it forward will have a monthly penalty and will affect more those who retire two years early. Pre-retirement adjustments could lead to cuts of up to 21% in the pension.

In this sense, Rodríguez stressed that a check of up to 12,000 euros per year can be obtained, that additional percentage or a combination of both formulas.

As a novelty, pensioners of the passive classes will have the same regularization in terms of revaluation and incentives in the delay of retirement as the rest of pensioners.

In any case, all these measures must be complemented by the reforms of the second phase.

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  • Minister council

  • Miquel Iceta

  • Maria Jesus Montero

  • GDP

  • Pensions

  • economy

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