Bill would reform pensions: sustainability, gender gap and minimum pensions

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1. The bill would create an Intergenerational Equity Mechanism: an extra 1.2 percentage point contribution that goes to the Social Security reserve fund. It replaces the old sustainability factor and would apply from 2023 to 2050.
2. A solidarity contribution would be created for wages above the maximum contribution base, with rates of 5.5%, 6% and 7% by bracket. It would phase in gradually from 2025 to 2045.
3. The maximum contribution base would rise each year, on top of inflation, by 1.2 percentage points from 2024 to 2050. The maximum pension would also rise, with a slight delay, to compensate those who contribute more.
4. The retirement pension calculation would change: instead of the last 25 years, a 27-year period would be used, automatically dropping the 24 months with the lowest contributions. Those retiring between 2026 and 2040 could choose whichever rule is more favorable.
5. The gender gap supplement would be expanded and could also be claimed by men in certain cases (for example, if their career was interrupted to care for children). Its amount would rise by an additional 10% in 2024 and 2025.
6. Minimum pensions would be strengthened: from 2027, the minimum retirement pension with a dependent spouse could not fall below the poverty threshold for a two-adult household. Other minimum and non-contributory pensions would also rise progressively.
7. Part-time work would count fully toward pensions regardless of hours worked, with improved rules for discontinuous permanent workers and self-employed workers. The first three years of leave to care for family members would also count as contributions.
8. Students doing training or external academic internships, including university and vocational students, would be covered by Social Security, with a 95% reduction in common contingency contributions.

Who it affects

• People close to retirement: Pension calculation rules change, with a more favorable option between 2026 and 2040.
• High earners: They would pay a solidarity contribution on wages above the maximum base and contribute on a rising maximum base.
• Women with irregular careers due to childcare: Better integration of contribution gaps and a higher gender gap supplement.
• Recipients of minimum and non-contributory pensions: Their amounts would rise progressively above the poverty threshold.
• Student interns and part-time workers: Internships would count under Social Security and part-time work would count fully toward pensions.

Words worth knowing

Base máxima de cotización (maximum contribution base)

The maximum amount of salary on which Social Security contributions are calculated.

Base reguladora (regulatory base)

The figure derived from contribution bases over a period, used to calculate the pension amount.

Fondo de Reserva de la Seguridad Social (Social Security reserve fund)

The Social Security piggy bank: money set aside to pay pensions when income falls short.

Pensión no contributiva (non-contributory pension)

A benefit for people with insufficient income who have not contributed enough for a regular pension.

Umbral de la pobreza (poverty threshold)

The income level below which a person or household is considered to live in poverty, according to the INE (Spanish statistics institute).

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