Superfund of pensions, what is it and to whom is it directed?




Lower commissions and good taxation are the attractions with which Escrivá has designed the first public pension plan that Spain will have, an initiative with which it will deal the final blow to the private retirement plans that many families, self-employed and SMEs have today . Escrivá activates this retirement savings formula without the support of employers and unionswho are the ones who have to negotiate these plans in collective bargaining, and brings to Parliament a formula that is part of the measures committed to with Brussels to ensure the sustainability of the pension system.

-What is the objective of the superfund?

-The idea that the Minister of Social Security is handling is to give the definitive boost to company pension plans in Spain as finalist savings to complement the future pension.

José Luis Escrivá's objective is also to increase the population covered by complementary systems for young people, SMEs and the self-employed. To achieve this, he has designed a super fund, which in turn is made up of three pension macro funds. Escrivá looks at himself in the mirror of the Basque Country, a community in which 48% of the total has these plans compared to 10% of the rest of Spain.

-What are the reasons why businessmen and unions have not joined the Escrivá project?

-They have demanded during the negotiation that the minister include fiscal incentives for these plans in the bill. Escrivá argues, however, that he prefers to wait for the conclusions of Montero's committee of experts on tax reform. The passage through Congress could also facilitate the incorporation of these incentives.

-What tools will the new retirement savings formula compete with?

-The minister wants to make the low commissions the tool to attract the population. Thus, the commissions accrued by the management entity may not exceed 0.4%, a limit that is set at 0.1% for depositing entities. In other words, the maximum may not exceed 0.5%, the same limit that company plans currently have, far removed from the 1.24% charged by individual pension plans.

-What will happen to private pension plans?

-The intention of the head of Social Security is to discourage affiliation to this tool on the commission side, but also because of taxation, which the Government considers "regressive". For two consecutive years this savings formula has been seen punished by the government. In 2021, the first great blow to private savings was already included, when the tax deduction for contributions to individual plans was reduced from 8,000 to 2,000 euros. And in the 2022 accounts, it has gone down the same path again and reduced that amount to 1,500 euros, arguing that these pension funds have very high commissions and that the deductions only benefit the upper classes.

The Executive cuts individual plans at the same rate with which it benefits company plans. In this 2022 This contribution and deduction limit of 1,500 euros may be increased by up to an additional 8,500 euros, provided that such increase comes from business contributions or contributions from the worker to the same social security instrument that is equal to or less than the respective contribution from the employer. For these purposes, the amounts contributed by the company that derive from a decision of the worker will be considered as the employee's contribution.

-Who will be in charge of controlling the public plans?

-A commission made up of seventeen members, four of whom will be proposed by the unions, four by business organizations and nine appointed by the Ministry of Social Security. Everyone will charge for it and their remuneration will be variable.

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