August 3, 2021

Valerio defends raising pensions according to the real CPI

Valerio defends raising pensions according to the real CPI


The Minister of Labor, Migration and Social Security, Magdalena Valerio, today endorsed the agreement of the Toledo Pact to revalue the pension according to the real CPI and said that it was a pact of "enormous satisfaction".

During his appearance in the Senate Labor Committee to advance the general lines of his department, Valerio said, however, that there are still more than 20 recommendations to be discussed and close, including some important ones such as number one, regarding the separation of sources to guarantee the financial sustainability of the system.

"The Government's commitment to maintaining purchasing power is unwavering," insisted the minister, who has been accompanied by the majority of her ministerial team, with the Secretaries of State for Employment and Migration, although with the absence of the secretary of Social Security State.

Valerio recalled that at the beginning of 2019 the compensatory payment will be paid to pensioners as the real CPI deviates from the current 1.6% expected.

It has also highlighted the importance of the Social Security Bureau that is part of the social dialogue and seeks measures to finance the system, taking into account the maintenance of the protection of the most vulnerable groups, such as women and young people.

"It should influence measures on the side of income and not the expense," said the minister after insisting that the balance of the system must be strengthened "with quality in employment and with a better protective action".

In this sense, he has announced that the ministry is considering re-establishing the possibility of a special agreement for people who have reached an adult age with significant gaps in their contributions during the years of the crisis.

"We are aware that the increase in income is essential for the financial solvency of the system, for that reason we are going to look for alternatives to the current situation within the framework of the Toledo Pact and the social dialogue, "he said.

In addition, it has indicated the commitment of the Government to maintain the stability of the pension system, but not acting unilaterally, referring to the indicator of pension update approved by the Government of the PP of 0.25%.

These statements by Valerio in defense of the Pact of Toledo come after the Minister of Economy, Nadia Calviño, said yesterday that in terms of pensions can not be attended to a single parameter, as its update according to the CPI, but should be analyzed sustainability taking into account a whole series of variables.

Also the Secretary of State for Social Security, Octavio Granado, has indicated that it would be left to the social dialogue to prepare the rule recommended by the Toledo Pact to raise pensions according to the CPI.

"We have to look for alternatives within the framework of social dialogue and the Toledo Pact," he said.

The minister has pointed out that the financing of contributory benefits should always be social contributions, but has advanced that will also leave open the door to other alternative sources of financing to Social Security, as the way of Budgets.

In this regard, he said that the debate is open both in the parliamentary and political spheres and in the social partners, and said that also the ministries of Economy and Finance are working on seeing the possibilities of modifying the current tax and tax regime to also help to finance the public pension system.

Valerio recalled that Social Security is a fundamental pillar of the welfare state and that the Spanish administration is the one that works best "in the world".

"It is a solidarity system between generations and we are interested in it working now and have a long and happy future," he said.

"My enormous satisfaction and that of the whole Government with the agreement in the framework of the Toledo Pact to revalue pensions according to the real CPI It is good news to make progress in these recommendations but the other day for the first time there was an agreement that talks about the revaluation of the pension according to the real CPI, "he insisted.

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