With the social pension agreement still hot, signed this Monday, the Minister of Social Security has advanced this morning part of his plans for the next element of negotiation that the Government will address with the social agents: the intergenerational equity index. This mechanism, which will replace the sustainability factor and is still to be debated, will mean a “moderate adjustment” for the retirement of the generation of baby boom, has affirmed José Luis Escrivá in an interview on TVE.
Government, unions and employers reach the first agreement to reform pensions in a decade
Escrivá explained that the intention of this index is that the generation of the baby boom, much more numerous with respect to the generation that succeeds it, “assumes some of the effort that must be made during a period of time” in the public pension system.
Until 2048 this ‘peak’ of pensioners is expected, with a less numerous generation of workers, but then this “demographic tension” of the system disappears. The person in charge of the Social Security has specified that Spain does not have an “acute problem of pensions”, reason why it considers that only a “moderate adjustment” will be necessary.
Choose between a “fit” or work more
The Minister of Social Security has explained that the idea of his Ministry, which has not yet materialized or has begun to negotiate with employers and unions, will involve applying “a fairly moderate adjustment” on the pensioner generation of the baby boom.
To questions from TVE about whether this means a “decrease” in the pension of those affected by the index, Escrivá has answered that not necessarily. “They will probably be able to choose between different options. One can be a small adjustment in their pension, which would be very moderate, or alternatively they could work something else. We have yet to specify,” he replied.
The minister has also responded about the next block of the pension reform, planned for 2022. Escrivá has pointed out that the extension of the period for calculating the pension promised in Brussels within the Recovery Plan will always be accompanied by the possibility of choosing to discard of some years. The minister has pointed out that this reform aims to “take into account new professional careers in which the last few years are not the best, as was the case before.”