He Ministry of Inclusion, Social Security and Migrations has improved its offer to reform the active retirement and try to convince more workers, especially self-employedso that extend their working life beyond retirement age. The department headed by Elma Saiz has proposed to social agents that workers who decide to delay their retirement and continue working once they retire may begin by combining 100% of their salary or income with 45% of their pension, to progressively increase this percentage up to a 100% of public provision from the 11 years in active retirementaccording to various sources familiar with the negotiations.
Social Security is very close to reaching an agreement with employers and unions to reform several parts of the public health system. pensionsamong which the aforementioned active retirement stands out, as well as the retirement partial or the mechanism of reduction coefficients for the early retirementamong others. According to the various sources consulted by this newspaper, the agreement is close and the most optimistic place it within a matter of hours.
One of the points that is holding back that definitive ‘yes’ is partial retirement, where the conditions that workers who enter as relievers Once a veteran has access to partial retirement, the issues are still unclear. Where there is greater consensus, although some details are still missing, is on the issue of active retirement.
The figures that negotiators are currently working with are as follows, subject to any possible last-minute changes. Currently, a worker or self-employed person who decides to retire but continue working begins his new stage by combining 50% of your pension and 100% of your salary or incomeAnd then the worker does not receive any more pension until he retires permanently, abandons his work income and goes to 100% pension.
Social Security is now proposing a scale that will progressively increase the percentage of public benefits received, in order to encourage active retirees to extend their working lives as long as they can or want and continue paying into the public treasury.
A worker who immediately reaches retirement age and asks to receive a pension but continue working will begin by combining 45% of his pension with 100% of his work income. For each year that he spends in active retirement, the percentage of his pension that he receives will increase by 5%. That is, in the second year he will receive 50%, the same as now, and in the third year he will receive more. After six years of active retirement he will receive 75% of his pension and after 11 years he will reach the limit of 100%.
More pension the longer retirement is delayed
The conditions with respect to current legislation also vary in the event that the worker involved is autonomous and has one or more employees under his/her charge. In this case, he/she would start charging the 75% of pension and 100% of their earningsto increase the percentage of pension received by five points for each year that their career extends. That is, in five years they would also reach 100% pension and income. These self-employed workers with employees would lose out compared to the current legislation, in which they can combine 100% pension and income from the first year of active retirement.
Although Social Security, in its proposal, has enabled a second door to increase the percentage of pension to be collected if workers delay the moment of starting to collect the pension. The more years it takes to start consuming public benefits, the higher percentage will start receiving, based on 45% pension in the first year, 55% in the second, 65% in the third year, 80% in the fourth and 100% from the fifth. Percentages that substantially improve the first offers of the Executive, which started this escalation from 30% of pension.
Pending partial retirement
Partial retirement is, for the moment, the biggest obstacle to all parties being able to close an agreement, after eight months of negotiations. According to various sources, the unions want to further reduce the minimum years of contributions to be able to access ordinary early partial retirement. Social Security has proposed being able to advance partial retirement by up to three years (now it is two), in exchange for requiring having 36 and a half years of contributionsHere the power plants are demanding fewer years and negotiations are continuing.
Also to specify the quality of employment that the person who comes in as a replacement in the event of partial retirement must have. Some of the veterans who want to stop working part of their day require, by law, that the company hire another person to train them and to replace the first one when he or she retires definitively. In this case, the unions demand that the new hire be undefinedto full timein a non-amortizable job and with better access conditions than the one that is leaving (that is, better salary). This would imply a higher cost for companies, which makes employers’ associations not look favourably on it. Negotiations are now pivoting on these last details and Social Security is putting pressure on to close it as soon as possible.
