The proposal that the Ministry of Inclusion has presented this Friday to the social agents has seven key points, which make up a substantial transformation of the current pension system. The proposal, whose essential points La Vanguardia has had access to, includes the elements agreed upon both with Brussels and with Podemos to seek consensus on the last part of the pension reform.
The essential element, as La Vanguardia has advanced, is the formula of the two systems for the calculation period of the pension that will coexist for 20 years. A formula that involves a significant increase in spending. To compensate for this, social contributions on wages are increased. On the one hand, the additional contribution established by the Intergenerational Equity Mechanism (MEI) is doubled, which goes from 0.6 percentage points to 1.2; and on the other, a solidarity quota is established that will become 6% on high salaries. This fee affects the entire part of the salary that does not contribute because it is above the maximum contribution limit.
To this key point, the increase in the maximum bases is also added, as well as an improvement in the minimum pensions. In addition, there are measures to cover gaps throughout the professional career and to reduce the gender gap.
All complemented by the Intergenerational Equity Mechanism (MEI), planned to ensure the stability of the system and which doubles the effort that will have to be made via social contributions. The proposals are the following:
It is the key to the whole deal. The most difficult point because it raised a high-voltage political opposition. Finally, for the next 20 years a dual regime of the computation period is established, which will allow choosing the most beneficial of two possibilities: the current system based on the last 25 years of career; or, the last 29 years, removing the two worst years.
The new option will roll out progressively over 12 years from 2026 and will especially benefit workers with irregular careers.
The current model is maintained with an improvement for the situation of women. In other words, it is maintained that contribution gaps are compensated with 100% of the minimum base for the first 48 months (four years) and with 50% of the minimum base from month 49 onwards. women employed by others is 100% of the minimum base between the empty month 49 and 60 (that is, up to the fifth year), and 80% of the minimum base between the month 61 and 84 (of the fifth year to the seventh)
The gender gap complement of pensions will have an increase of 10% in addition to the annual revaluation, in the 2024-2025 biennium.
A path of convergence of the minimum contributory pensions is established to ensure that they converge with 60% of the median income. It is an operation similar to the one that has been carried out with the SMI. The reference for the median income is the minimum pension with a dependent spouse, which between 2024 and 2027 would reach 60% of the median income corresponding to a household of two adults.
A similar process is also established for the evolution of non-contributory pensions, which will grow until they converge in 2027 with 75% of the poverty threshold calculated for a single-person household.
With so much spending, income must be strengthened, and for this, high incomes are especially affected. In this way, the maximum bases are raised, in a gradual process between 2024 and 2050. A fixed amount of 1.2 percentage points will be added to the annual amount of the CPI.
The maximum pensions will be revalued year by year with the annual amount of the CPI plus an additional increase of 0.0115 percentage points that will accumulate each year until 2050. From 2050 to 2065 there will be additional increases.
A solidarity quota is established for the part of the salary that currently does not contribute because it exceeds the contribution ceiling. The quota will be 1% in 2025 and will increase at a rate of 0.25 points per year until it reaches 6% in 2045.
The planned effort of the Intergenerational Equity Mechanism (MEI), designed to ensure the sustainability of the pension system, is doubled. If a price of 0.6 points had been set with this mechanism, now it will go to 1.2 percentage points in 2029. The rate of increase will be one tenth per year and the objective is to reinforce the system during the years in where there may be more tension due to the baby boom generation
