The European Commission announced the initial approval of € 69,500 million Aid Plan for Spain on June 16. The Plan is made to reinforce economic and social resilience in Spain, after the crisis experienced caused by the pandemic.
The study and work proposals that the Spanish Government presented to the European Commission on pensions, include the agreements of the social agents and political parties in the Toledo Pact.
The main ones are:
1. Separation of funding sources. Social Security will stop paying expenses that do not correspond to them and will be assumed by the State. The reductions in the contribution to promote employment, the childbirth and childcare allowance or the maternity pension supplement, will be financed directly by the State.
2. Public pensions will be updated with the Consumer Price Index (CPI).
3. Measures to approximate the effective retirement age with the legal age. One of the proposals will be a payment of 12,060€ per year when people delays his retirement from the legal retirement date.
4. New calculations will be studied to determine the regulatory base, which is currently the last 25 years of listing.
5. Likewise, a new intergenerational equity mechanism will be studied.
6. The contributions of the Special Self-Employed Scheme will approximate their real income.
7. There will be a special promotion for private pension systems.
There is still much work to be done, but the public pension system must be sustainable for the benefit of Spanish society. Only with changes in the legislation, current pensioners and workers will be able to enjoy public income and private supplements when it is necessary because that either they can no longer work, or their working life has come to an end.
The actuary and economist Jaume Quibus holds a master’s degree in Financial Economics and Accounting, a degree in Actuarial and Financial Sciences, a degree in Economic and Business Studies from the University of Barcelona and has completed the Management Development Programme at the IESE Business School of the University of Navarra. He is a full member of the following associations: the Catalan Actuarial Association, the Spanish Actuarial Association, the Catalan Economists Association, the International Actuarial Association, the Catalan Association of Accounting and Management and also a member of the IESE Business School Alumni. He was a founding partner in 1998 of the actuarial company Quibus, and is corporate member number 6 in the Catalan Actuarial Association.