The Government wants to end forced and partial retirement

More details on the pension reform that the Government wants to agree with the social agents and send to Brussels at the beginning of the year. The Executive transferred unions and employers this week that it wants to end forced retirement in companies and also partial retirement. These are two of the measures included in the text prepared by the Ministry directed by José Luis Escrivá in order to achieve a balance between income and expenses and to which this newspaper has had access. As the minister had already advanced, a tightening of the conditions for early retirement on a voluntary basis is established and greater incentives are created for people to retire beyond the legal age. The aim of these measures is to bring the effective retirement age closer to the legal age, as recommended by the Toledo Pact.

To this end, the Government intends to prohibit companies from establishing clauses in collective agreements that oblige workers to retire once they have reached the legal age to do so, as now permitted by law. However, should this new rule see the light of day, it will only apply to collective agreements signed from its entry into force, while a period of one year is given for those previously signed. Currently employers can oblige workers who have reached the legal age and have access to 100% of the pension to retire; however, with these new regulations they would have to compensate them in case they want to do without them.

Along the same lines, the Executive aims to veto partial retirement, which allows working hours to be reduced in the same proportion as wages and to complete it with part of the pension; Furthermore, when they reach the ordinary retirement age, they retire without having their pension reduced. However, those who intend to access it will be penalized with reducing coefficients in the event that this reform proposal goes ahead. In turn, partial retirement is incompatible with unemployment.

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The new design that Escrivá wants to implement is also taking shape in order to curb early retirement, for which it establishes two measures. The great novelty lies in the fact that it proposes to create new penalty coefficients and toughen them for those who intend to retire in the months following reaching the age of access (63 years), with the aim of delaying it for at least a few months. Along the same lines, the punishment will be greater for those who do so in the months prior to the ordinary retirement age (66 years in 2021) to discourage non-compliance. For this there will be monthly penalty coefficients instead of quarterly.

The other way that the Government proposes to toughen and discourage early retirement had already been advanced by Escrivá: applying the reducing coefficients on the amount of the pension instead of on the contribution base, to prevent those who have contributed by the maximum bases they are not just penalized for early retirement. Now they will see their payroll cut a real 8% for each year in advance.

In addition, the text includes greater demands on the early retirement of those workers who carry out their activity in painful or dangerous conditions, who, in addition to having to overcharge for this reason, will have to prove that the minimum work of this type required has been carried out in ages close to retirement. And in no case can they do so before age 52.

On the contrary, as had been advanced, the Executive will reward those who continue working once the legal or ordinary retirement age has been reached. To do this, it raises the award to 4% for each year in which working life is delayed above the legal retirement age and, furthermore, the accumulation of these incentives will not prevent reaching a pension above the maximum amount. As an alternative, the text proposes to receive the award in the form of a lump sum for each year or “a combination of the above solutions under the terms to be determined by regulation”, as stated in the text that has yet to be negotiated and approved. .

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