Madrid (EFE).- The Official State Gazette (BOE) publishes this Friday the royal decree law with the measures of the last block of the pension reform, focused on reinforcing income to guarantee the sustainability and sufficiency of the system.
Almost two years after agreeing on the first block of the reform -which recovered the revaluation of pensions with the CPI- these are eight keys to a package that seeks to strengthen the system in the face of the spending peak that will mean until 2050 the retirement of a of the largest generations, that of the so-called “baby boom”.
Dual computation period
The norm establishes that it will be possible to choose for the calculation of the initial pension between the current 25 years and a new period of 29 years, discarding the 2 worst years. The introduction of this new calculation will be done progressively from 2026 to 2037. By default, the most favorable calculation will be applied.
Starting in 2041, the 25-year calculation will also be progressively extended in 6-month periods so that in 2044 only the option of 29 years minus 2 remains.
Top of the maximum bases and maximum pensions
The path of increase of the maximum contribution base is set, currently at 4,495.50 euros per month, which will rise by an additional 1.2 points each year to inflation. Every five years, the Government will evaluate, within the framework of social dialogue, the impact of this increase and will submit a report to the Pact of Toledo.
As for the maximum pension, the additional increase will be 0.115 points between 2025 and 2050. Starting in 2051, a path of greater increases is established that begins at 3.2% that year and ends at 20% in 2065.
New Intergenerational Equity Mechanism (MEI)
Another of the changes established by the standard is the new design of the Intergenerational Equity Mechanism (MEI), an additional contribution that will progressively go from 0.6 to 1.2 points in 2029. It will be finalist to nurture the reserve fund , the so-called pension piggy bank.
Of this amount, one percentage point will correspond to the company and 0.2 points to the worker. This contribution may not be subject to any bonus, reduction, exemption or deduction.
The rule also establishes the maximum annual disbursements from the reserve fund, which may begin to be used in 2033. The highest percentage of use is set for 2047, when up to 0.91% of GDP may be disbursed.
solidarity fee
The solidarity quota, another additional surcharge to the contributions for the part of the salaries that exceed the progressive uncapping of maximum bases, is fixed in three sections. It starts at around 1% in 2025 to end at 7% in 2045 for the highest salaries.
Path of improvement of minimum pensions
The norm published this Friday also establishes that from the year 2027, the minimum amount of the contributory retirement pension with a dependent spouse, the most common, may not be less than the poverty threshold calculated for a household made up of two adults.
To reach that threshold, an increase of 22% is expected in the next three years.
Improving the treatment of gaps and the gender gap complement
The treatment of periods without contributions is improved, with a special focus on women, covering up to five years of contribution gap with 100% of the minimum base, while the sixth and seventh years without contributions will be covered with 80% of the minimum basis.
In addition, the period considered as contributions in the case of leave of absence to care for other relatives up to the second degree of consanguinity or affinity is raised from one to three years. The increase is also extended from two to three years to cover 100% of the contribution in reductions in working hours for child care.
An additional 10% rise is set in the gender gap supplement in 2024 and 2025 pensions.
For the first time, the integration of periods without the obligation to contribute for self-employed workers is regulated, providing coverage with the minimum base for the six months following the cessation of activity.
Part-time work is equated with full-time work for the purposes of calculating the periods of contribution for the recognition of retirement pensions.
closing clause
The reform incorporates a mechanism in the event of spending misdirection. In this case, the Independent Authority for Fiscal Responsibility (AIReF) will make a report and the Government will try to reach an agreement with the social agents on correction mechanisms. If this does not happen within a year, an automatic rise of the MEI is contemplated.
Internship quote
The norm also establishes the inclusion in the Social Security system of students who carry out training practices or external academic practices included in training programs, where university and professional training students enter.
A 95% reduction will be applied to the fees for common contingencies of these contributions.
The royal decree, which must now be validated and will foreseeably be processed as a bill, has had the endorsement of the UGT and CCOO unions while the CEOE employers rejected the measures.