The government wants to reach 9 billion euros in the pension reserve fund for the year 2024 and end the legislature with a positive balance of 25 billion euros. To achieve this goal, it is essential not only to maintain the continuity of the last reformbut also monitor possible fraud that threatens the integrity of the system. THE retirement pensionn is considered for life, although it can be revoked if the circumstances which gave rise to its granting undergo significant changes.
Various reasons can lead to the loss of a pension. Resumption of work without notifying Social Security, the death of the beneficiary and the falsification or concealment of relevant data are some examples. In the event of death, family members have the obligation to notify it; Otherwise, they could face legal problems. Additionally, if it is determined that the retiree provided incorrect information when applying for the pension, the pension may be terminated. Finally, retirees must respect the obligation to provide periodic information confirming their right to a pension, as is the case for those who reside abroadwho must present a life certificate each year.
Retirement pension
The Social Security retirement plan aims to replace work income with a pension for life and inalienablewhich is granted when the worker, due to his age, completely or partially ceases his professional activity.
The beneficiaries are the people affiliated with any Social security system who meet certain conditions, including the minimum age, a contribution period of at least fifteen years (including two during the last 15 years preceding retirement) and the corresponding causal event.
THE amount of pension It is calculated from the regulatory base and the percentage applied according to the years contributed. This benefit is paid monthly, including two extraordinary payments in June and November, and is subject to annual adjustments in accordance with the CPI.
The request must be processed within a maximum period of 90 days by the National Institute of Social Securityand the pension only ends on the death of the beneficiary.
Incompatibilities
The benefit of the retirement pension presents various incompatibilities and compatibilities according to the regulations in force. First of all, it is incompatible with the exercise of any professional activity this implies the inclusion of the pensioner in the general regime or in special regimes, except for stipulated exceptions.
Likewise, the performance of public sector positionswith the exception of emeritus university professors and licensed health professionals. If incompatible jobs are performed, retirement pension will be suspended, as well as health care associated with retired status. In this case, the employer must register the worker and pay the contributions for the corresponding eventualities.
On the other hand, there are modalities which make the receipt of the pension compatible with certain jobs. For example, the pension can be combined with a part-time jobwhich results in a proportional reduction in the amount of the pension. In addition, retirees can exercise self-employment, provided that their annual income does not exceed the interprofessional minimum wage.
It was also established that the retirees dedicated to artistic activities They can receive 100% of their pension when they work, without this affecting their right to supplements. In this context, employers must comply with their Social Security registration and contribution obligations, by submitting to a special contribution of 9%. Retirees also have the possibility of opting to suspend their pension while they contribute for their professional activity, according to the regulations applicable to each case.
Incentives to Delay
On the other hand, if the General Cortes approve the reform, it would be the third reform of the retirement system in the last four years. These changes aim to adapt the system to the current and future needs of workers and retirees in Spain. Among the most relevant changes, the obligation to have a quote racesuch as the 36 years and 6 months required for those who will retire in 2024, 2025 and 2026. In addition, new incentives are integrated linked to the retirement age and the percentage of pension to be received.
With this reform, the compatibility of active retirement with the incentives to delay retirement age. The percentage of pension that can be received will increase depending on the delay in accessing retirement, starting at 45% after one year of delay and reaching 100% after the fifth year. On the other hand, if the professional activity is carried out on an independent basis and it is proven that there is at least one worker hired on a permanent basis with more than 18 months of seniority, the pension percentage will be 75%. This represents a deterioration compared to the previous regulation, which allowed 100% of the pension to be received in similar situations.
