Sunday, February 5

The Government ties the first leg of the pension reform thanks to ERC and PNV




The Government has today passed a key parliamentary procedure – and express – to approve the first part of the pension reform, one of the main rules that condition the arrival of European funds. The Labor Commission of Congress has endorsed the norm today, adding to the votes of PSOE and United We Can, those of Esquerra Republicana and the PNV, to which Compromís has also joined. EH Bildu has abstained while PP, Vox, Ciudadanos and the CUP have voted against

Beyond the vote, in the rapid approval of the reform designed by the Minister of Social Security -and agreed with the unions and only partly by businessmen- the role of the Government’s parliamentary partners, especially ERC and Bildu, has been key.

Thanks to them, what can be considered its vault has been incorporated into the text, the intergenerational equity mechanism, a substitute for the PP sustainability factor, and which includes a rise in social contributions of 0.6 points over ten years to starting in 2023 and which led to the departure of the businessmen from the negotiations.

The Government needed to introduce it via an amendment to the norm, the general lines of which were approved in July, but neither the PSOE nor United We Can had live amendments, so it has finally been incorporated into a transactional amendment from ERC and EH Bildu proposals. The rule will now go to the Plenary, for the moment December 2 is considered as the date for the debate, which will have the last word on this reform, although it is very unlikely that there will be changes in the direction of the vote of the groups at this point. It will then be sent to the Senate to complete its processing.

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The Labor Commission has also approved amendments required by ERC and Bildu, which had required the realization of a audit of improper expenses assumed by Social Security and the public pension system and which are unrelated to contributory pensions. Expenditures that the reform has already taken out of the system and has begun to finance via Budgets.

According to the amendment, the pension reform will include a mandate to the Government so that within six months it remits to the Toledo Pact a report to quantify all expenses of a taxable nature and non-contributory and its financing since 1980. Said report must reflect the so-called improper expenses and to be financed through the State’s general budgets, such as the benefits of specific schemes and groups, the recognition of early pensions where no additional contribution has been foreseen and reductions in the contribution.

In addition, another has also been approved to expand access to the pension of widowhood to domestic partners, also extending it to all cases in which the beneficiary does not have the right to another contributory pension recognized. Another change incorporated in the presentation phase is the recognition of a supplement to the pension for contribution careers of 40 years that do not reach 900 euros, as well as the mandate by law to the Government to review the criteria to determine the amount of the minimum pensions of in such a way as to guarantee its sufficiency and take into account the evolution of the minimum wage .

Beyond the amendments and the controversial equity mechanism, the first part of the reform includes the revaluation of pensions each year based on the evolution of the CPI and new incentives and penalties to equalize the real and effective retirement age.

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