Bill to improve protection for workers in alternative mutual societies

Automatic summary, not yet reviewed

1. The bill would raise the minimum benefits paid by mutual societies that act as an alternative to the Special Scheme for Self-Employed Workers: periodic payments could not be lower than 100% of the minimum public pension (or the non-contributory pension if higher), and a lump sum could not be lower than the capitalized equivalent of that minimum.
2. The mutual society would be considered to meet that minimum if the member's contributions equal 100% of the contribution resulting from applying the general common-contingency rate of the self-employed scheme to the member's minimum base. The increase would be gradual: 86% in 2026, 93% in 2027 and 100% in 2028.
3. It would create a gateway so that professionals who are members of an alternative mutual society could request, within one year of the implementing regulation, the voluntary transfer of their accumulated economic rights to Social Security. They must lack the minimum period for a retirement pension and not be a pensioner (except for a widow's pension), and moving to the self-employed scheme would be mandatory and irreversible.
4. The transfer would have no personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. (IRPF) consequences when carried out, and to convert it into contribution periods the minimum base the worker would have had would be used, updated and with an improvement coefficient of 0.77. Members who turned 52 by December 31, 2026 would count each month in the mutual society as a month in the self-employed scheme.
5. Transparency would be strengthened: alternative mutual societies would have to give their members a clear semiannual report on their funds and how they evolve, and send documentation to the Directorate General of Insurance and Pension Funds for supervision. The Government would also have to approve, within one year, regulatory reforms with more transparency, supervision and control guarantees.
6. The Government would have to evaluate the alternative regime before December 31, 2027 and send the report to the Cortes Generales. A special agreement is also planned for those who left their mutual society before it applied individual capitalization and do not reach fifteen years of contributions, allowing them to count up to five years before leaving.

Who it affects

• Self-employed professionals who belong to a mutual society that is an alternative to the self-employed scheme.: Their benefits would have a higher minimum and they could voluntarily and irreversibly transfer their rights to Social Security.
• Members paying contributions to the mutual society.: The minimum-equivalent contribution would rise gradually to 100% in 2028.
• Those who left an alternative mutual society before individual capitalization and do not reach fifteen years of contributions.: They could sign a special agreement to count up to five years of contributions before leaving.
• The alternative mutual societies themselves.: They would have to give more information to their members and to the Directorate General of Insurance and Pension Funds.

Words worth knowing

Mutualidad de previsión social alternativa (alternative mutual society)

A nonprofit insurance entity that, as an exception, replaces the public self-employed scheme for some professional association members.

Profesional colegiado (professional association member)

Someone who practices a profession requiring registration with a professional association, such as lawyers or doctors.

Capitalización individual (individual capitalization)

A system where each person's contributions accumulate in their own account and benefits are paid from it.

Convenio especial (special agreement)

An agreement with Social Security to pay contributions so they count as contribution periods.

Base reguladora (regulatory base)

The amount calculated from contribution bases used to set the pension amount.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

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