Escrivá proposes raising contributions to recover the ‘pension money box’

The Ministry of Inclusion, Social Security and Migrations has proposed to the social agents a increase in prices which will aim to recover the Social Security Reserve Fund, popularly known as ‘pension money box’.

The proposal has been made in the meeting that the Ministry has held this Tuesday with the social agents. The purpose of the meeting was to negotiate the details of the new intergenerational equity mechanism (MEI), with a view to reaching an agreement within two weeks.

The recovery of the ‘pension money box’ would be carried out through a “finalist” increase in contributions. The increase proposed by the Government It would mean, according to the document proposed this Tuesday, an increase of between four and five euros for a mileurista worker.

The objective of this new contribution would be to ‘fatten’ the Reserve Fund so that it can be used from 2030 in the event of a “spending deviation” with respect to the forecasts. The Government has marked that decade because that is when the system “could be more stressed,” according to sources close to the Ministry. This is because at that time the retirement of the so-called ‘baby boom’ generation will take place.

The Ministry of Social Security has stated that, in the event that there is no deviation in spending from the forecasts, these extraordinary and finalist contributions that have been collected would be returned in the form of lower contributions or higher pensions.

The Social Security Reserve Fund closed 2020 located in the 2,138 million euros, according to the latest annual report on the mechanism sent to Congress. In 2011, the Fund reached an amount of 66,815 million euros.

The MEI is part of the first leg of the pension reform

Despite the Government’s proposal, the meeting of the social dialogue table that has took place this tuesday It has been closed without any kind of agreement. The Ministry has summoned the social agents to meet again on Monday, November 8.

The Ministry has presented at the meeting on Tuesday a document of the MEI on which will continue to negotiate. From the unions underline that the meeting has ended “without incident” and that no closed proposal on the mechanism has been delivered to them.

The MEI is part of the first leg of the pension reform agreed between the Government and the social agents, but it is still pending. This mechanism, which will operate from 2027, aims to preserve the balance of the long-term system and equity between the different generations of pensioners.