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The sustainability of pensions Pedro Sánchez and the general secretaries of and UGT meet in Moncloa to make official the first major agreement on pensions from which business organizations have finally withdrawn. moncloa Newtribuna 16, 2021, 9:02 The new mechanism establishes that starting in and over a period of ten years, an additional final contribution ofpercentage points will be set (0.5 will correspond to the company and to the worker) to nourish the Social Security Reserve Fund. The regulations on the Reserve Fund will be adapted to guarantee that the use of this final quota and the returns it generates are used exclusively to address deviations in the level of expenditure. The President of the Government, Pedro Sánchez and the general secretaries of and UGT, Unai Sordo and Pepe Álvarez, sealed this Tuesday the first major pension agreement of the legislature without the assistance of the employers' association. Gathered in , the Government and unions have made official the pact for the approval of the so-called Intergenerational Equity Mechanism (MEI) from which business organizations have finally withdrawn.
This new mechanism to guarantee the sustainability of pensions includes a final contribution, the increase in contributions of up to 0.6 points for the next 10 years, of which 0.5 will be paid for by employers and 0.1 will affect the worker. This element will be included in the bill to guarantee the purchasing power of pensions and other measures to reinforce the sustainability of the system, currently being processed by parliament, through Australia Phone Number amendment. The MEI replaces the Sustainability Factor included in the 2013 reform and, unlike it, will be of contingent and temporary application, acting as a "safety valve" of the system from 2033, in the event that there is a diversion of the pension spending forecast for . In the event that there is no deviation from the planned spending path, no measure will be applied and the use of the reserve fund resources will be considered to reduce social contributions or improve the amount of pensions. If, starting in 2033, a deviation in the pension spending forecast for 2050 with respect to the report (which will be used as a reference) is noted in the Aging Reports of the European Commission, this Fund will be used, with a drawdown limit.
Annual 0.2% of the Gross Domestic Product (GDP). If the disposal of assets from the Reserve Fund is not sufficient, the Government will negotiate with the social partners for its elevation to the Toledo Pact, in accordance with their recommendations, a proposal that, in a balanced way, is aimed at reducing the percentage of spending on pensions in terms of GDP, either to increase the contribution rate or other alternative formulas to increase income. This mechanism was reflected in the agreement of July 1, which included the recommendations approved in the Toledo Pact and was signed by the CEOE and Cepyme, who have finally decided to withdraw from it. According to the statement issued by the employers' association, "the Executive Committee of CEOE has today rejected the Government's proposal in relation to the Intergenerational Equity Mechanism for pensions.The general secretary of , Unai Sordo, highlighted that CCOO was clear that the mechanism could not be based on cuts, but on the improvement of the Social Security income structure. "That is why we have agreed on an additional contribution for the next ten years of.
This new mechanism to guarantee the sustainability of pensions includes a final contribution, the increase in contributions of up to 0.6 points for the next 10 years, of which 0.5 will be paid for by employers and 0.1 will affect the worker. This element will be included in the bill to guarantee the purchasing power of pensions and other measures to reinforce the sustainability of the system, currently being processed by parliament, through Australia Phone Number amendment. The MEI replaces the Sustainability Factor included in the 2013 reform and, unlike it, will be of contingent and temporary application, acting as a "safety valve" of the system from 2033, in the event that there is a diversion of the pension spending forecast for . In the event that there is no deviation from the planned spending path, no measure will be applied and the use of the reserve fund resources will be considered to reduce social contributions or improve the amount of pensions. If, starting in 2033, a deviation in the pension spending forecast for 2050 with respect to the report (which will be used as a reference) is noted in the Aging Reports of the European Commission, this Fund will be used, with a drawdown limit.
Annual 0.2% of the Gross Domestic Product (GDP). If the disposal of assets from the Reserve Fund is not sufficient, the Government will negotiate with the social partners for its elevation to the Toledo Pact, in accordance with their recommendations, a proposal that, in a balanced way, is aimed at reducing the percentage of spending on pensions in terms of GDP, either to increase the contribution rate or other alternative formulas to increase income. This mechanism was reflected in the agreement of July 1, which included the recommendations approved in the Toledo Pact and was signed by the CEOE and Cepyme, who have finally decided to withdraw from it. According to the statement issued by the employers' association, "the Executive Committee of CEOE has today rejected the Government's proposal in relation to the Intergenerational Equity Mechanism for pensions.The general secretary of , Unai Sordo, highlighted that CCOO was clear that the mechanism could not be based on cuts, but on the improvement of the Social Security income structure. "That is why we have agreed on an additional contribution for the next ten years of.