February 28, 2021

The "pension fund" only has 8,061 million euros, less than at the end of 2017

The "pension fund" only has 8,061 million euros, less than at the end of 2017


The reserve fund of the Social Security currently has 8,061.56 million euros, a figure that is below the 8,085 million it had at the end of 2017, because the returns on the securities in which it is placed are negative.

The Secretary of State for Social Security, Octavio Granado, has appeared today before the parliamentary committee of the Pact of Toledo, where he has assured that the so-called "pension savings bank" has "just over 8,000 million euros".

Granado explained that the reserve fund is invested in public debt assets that have a negative return since mid-2017, "comparable to the one he had at the beginning of 2003", so that his current situation "is anything but flattering" .

The portfolio of assets that form part of the reserve fund is invested exclusively in Spanish public debt with very short maturities, which has had negative yields of 0.1% and 0.4% in the last year.

Granado has attributed this investment policy to the previous PP Government and has ensured that "it would have been possible to have other" more "reasonable forecasts, investing a part in the long term and part in the short, something that" would have required having a plan ".

From the 67,000 million euros that it had in 2011, after the contributions made over the years, 74,000 million have been deducted from the reserve fund for the payment of pensions, a greater amount than that contributed because the yields have been added to it. financial results obtained from their placement in debt

"At the moment, the current Administration does not share in any way the criteria used by the previous Administration or its forecasts," said Granado, who has been "more optimistic", although he has recognized the reserve fund has a problem of financing.

So, he insisted that if in 2016 and 2017 two-year investments had been made of the money that was not going to be used from the reserve fund, "we could have had non-negative returns".

This is an "atypical" exercise, said Granado, because initially there was "a path of stability, then in practice it is modified and a budget is presented that no longer meets the approved path, and then – Social Security – has a volume of deficit that does not meet either the first path or the second. "

In this way, the Secretary of State has tried to explain that the current deficit target for 2018 of the Social Security does not coincide with the advanced one in the macroeconomic table (1.1%), but that it contemplates a superior one (close to 1 , 6%) after incorporating the impact of 1,800 million euros derived from the rise in pensions this year and the improvement in widowhood.

The improvement of the income of the Social Security will come of the hand of the collection by quotations, thanks to that "the wages raise" after the agreement of collective bargaining reached in June by employers and unions, reason why it has asked the deputies that "do not underestimate the social dialogue".

Looking ahead, said that "pensions are going to square but we will have to apply accounting imagination to solve a problem that was created when a measure was passed that forced us to spend more without establishing how to enter more".

On the other hand, he assured that, in his opinion, it makes no sense to set limits of non-availability, which makes sense is a more prudent policy with the reserve fund, he added.

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