Bill proposes higher pensions and earlier retirement age

Automatic summary, not yet reviewed

1. The bill would set the ordinary retirement age back at 65, instead of the 67 planned by the 2011 reform, and would allow retirement from age 61 if the worker reaches 100 % of the regulatory base.
2. It would lower the requirements for early retirement: at 61 if the job loss is not the worker's fault, and at 63 if voluntary, with a monthly reduction coefficient of 0.5 %, softer than the current one.
3. It would change how pensions are calculated: the regulatory base would be based on 20 years of contributions, and workers could choose their best 240 contribution months, not necessarily the last ones.
4. It would eliminate the sustainability factor and restore pension uprating based on the forecast consumer price index, paying the difference if actual inflation is higher.
5. It would reform the child supplement: 5 % of the pension per child (10 % for single-parent families or children with a disability), up to a maximum of 15 %, plus specific contribution periods of two years per child.
6. It would improve the unemployment subsidy for people over 52: the age would go back to 52, the amount would rise to 75 % of the minimum wage (more with dependents), and it could be combined with future early retirement.
7. It would tighten control of part-time work: mandatory daily time records, limits on additional hours, and penalties if hours worked exceed the agreed schedule by more than 15 %, which would count as failure to register the worker.
8. It would change Social Security funding: the State would have to cover any deficit from its General Budgets when contributions fall short, to avoid cuts in benefits.

Who it affects

• People close to retirement: They could retire earlier (at 65, or 61 in some cases) with a pension calculated on more favorable terms.
• Current pensioners: Their pensions would be uprated with inflation and they would receive a one-time payment for losses from the 2011 and 2013 reforms.
• Women with children: They would receive a pension supplement and extra contribution periods for each child.
• Unemployed people over 52: They would get the subsidy earlier, with a higher amount and better contributions toward their future pension.
• Part-time workers and employers: More time-record controls and penalties if contributions are paid for fewer hours than actually worked.

Words worth knowing

Base reguladora (regulatory base)

The starting amount used to calculate a pension, based on the contribution bases (what was paid in on your wages) over specific years.

Coeficiente reductor (reduction coefficient)

The percentage deducted from a pension when someone retires before the ordinary retirement age.

Factor de sostenibilidad (sustainability factor)

A mechanism that reduces the initial pension based on changes in life expectancy.

Pensión no contributiva (non-contributory pension)

A pension for people with insufficient income who have not contributed enough to get a contributory pension.

Contrato de relevo (relay contract)

A contract under which an employer hires someone to cover the hours left vacant by a worker who takes partial retirement.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries