The Government has finally signed with the European Commission to undertake an extension of the period of years worked to calculate pensions in 2022 and also a stoppage of the maximums.

This is contained in the so-called operational agreement published today by the Ministry of Finance and the European Commission and which further clarifies the commitments made by the Government of

Pedro Sánchez

to obtain European funds.

In the document, signed by the Minister of Finance,

María Jesús Montero

, and the Commissioner for Economic Affairs,

Paolo Gentiloni

, and which has finally been published, it is stipulated that by the last quarter of 2022

the legislation for the adjustment of the calculation period, extending it to calculate the retirement pension

". Sources from the Ministry of Social Security indicate that it was already a commitment with Brussels, although its owner,

José Luis Escrivá

, has made ambiguous statements on the matter and members of Podemos warned that they would reject the measure as it constitutes "an adjustment" of pensions. Currently the pension is calculated over 25 years of contributions, but by expanding the base, access to the benefit is hardened, although it may also favor some groups if, as Escrivá suggests, it is allowed to choose the best years of contributions.

In the contract to obtain the funds, it is also assumed that, in addition to the 0.6% rise in contributions that has been proposed to the social agents, there will be the so-called top-down of the maximum bases, which currently correspond to those who they earn more than 45,000 euros. It is also established for next year the "

entry into force of the legislation for the adjustment of the maximum contribution base

: progressive increase of the maximum contribution base of the system and the adaptation of the maximum pensions to expand the base of contribution and progressiveness of the system and increase overall income ".

As for the so-called sustainability factor that linked pensions to life expectancy, the European Commission accepts its repeal as long as it is replaced by "a mechanism that guarantees intergenerational equity and budgetary sustainability adjusting to demographic changes." That is, with economic effects similar to the repealed sustainability factor.

In any case, the European Commission reserves the right to request additional reports upon the mere entry into force of the reforms and specifically specifies in the signed document that it wants the "publication of updated projections that show how

the pension reforms undertaken in 2021 and 2022 ensure

long-term

fiscal sustainability

while also taking into account the impact of other structural reforms, such as labor market reforms. "

According to the criteria of The Trust Project

Know more

  • European Comission

  • We can

  • Jose Luis Escrivá

  • Social Security

  • Maria Jesus Montero

  • Pensions

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