PENSION SYSTEM

Pension reform proposes decoupling benefits from inflation

Overhaul calls for pension entitlement parameters to be revised in line with state of economy

The government is preparing a reform of the pension system under which benefits will no longer be automatically indexed to inflation, Social Security sources said Wednesday.

The Popular Party (PP) government last week cited the need to meet its budget deficit target for this year as the reason for not complying with its obligation to top up pensions as a result of inflation being almost three times the official estimate.

The decoupling of pensions from inflation comes within a reform to ensure the system’s sustainability under which the main parameters determining pension entitlements – retirement age, the number of years of social security contributions required, and the period on which the calculation of pension income depends – are to be periodically revised.

The previous Socialist government introduced a reform under which the retirement age was raised progressively to 67 years on the basis of an extra month and a half of work every year through to 2027. However, Brussels wants this process to be speeded up.

The Socialists are leading a large group of opposition parties in an appeal against the government’s decision not to top up pensions this year.

Para poder comentar debes estar registrado en Eskup y haber iniciado sesión

Darse de alta ¿Por qué darse de alta?

Otras noticias

LATIN AMERICA

Who killed 13-year-old José Luis Tehuatle?

The death of a boy at a demonstration in a Mexican town is pitting the regional government against the people

Tensions flare as former Colombian president Uribe returns as senator

The ex-head of state makes a political comeback four years after he left office

Argentina: days away from a default

The Fernández administration must reach an agreement with the “vulture funds” by Wednesday

The Chilean president’s right-hand man

Rodrigo Peñailillo has become Michelle Bachelet’s trusted aide and the most powerful minister in her new administration

Lo más visto en...

» Top 50

Webs de PRISA

cerrar ventana