The Minister of Inclusion, Social Security and Migration, José Luis Escrivá, assures that the generation of babyboom will ask for “a very moderate effort, understandable, gradual and focused on a few generations “with the future intergenerational equity mechanism.

In an interview in Five days, the minister affirms that “we are not thinking in terms of adjustment” because it is “an open and at the expense of contributions from social dialogue“.

Last Thursday, Escrivá advanced in an interview in TVE the possibility that the baby boomers with the new mechanism of having an adjustment in your pension or working longer in order to somehow assume the increase in pension spending that will occur with the retirement of this generation. These words, which the minister clarified the next day and specified that it is an issue that has to be negotiated in the social dialogue, provoked the rejection of the social agents.

In the interview in Five days, Escrivá points out that the intergenerational equity mechanism, which will replace the Sustainability Factor, will be “conjunctural”, will start in 2027 and “the time in which the system needs a boost will be maintained” for the withdrawal of the baby boomers.

On the other hand, when asked if it will be necessary increase quotes, Escrivá responds that “it is not contemplated” because, although spending on pensions over GDP in Spain is lower than in other European countries, Spanish contributions are “higher” and “the problem is the improper expenses” assumed by the system . “Once you fix that problem, the system emerges completely solvent,” he says.

Regarding the revaluation with the CPI that has been agreed with the social agents and the possibility that inflation will trigger spending on pensions, Escrivá emphasizes that the average CPI of the previous year will be applied and “a long-term process ensures the purchasing power on average and without bias“.

Furthermore, it underlines that sees no risk that pensions could grow more than wages because payrolls incorporate productivity into their rise.

On penalty for early retirement and the lower activity rate among older workers, the minister draws attention to the collective layoffs or ERE that are taking place in banking and distribution and their impact on people who are not as old as usual.

Regarding the new public fund that is going to be launched to promote pension plans linked to employment, the minister points out that the calendar is to be agreed this year and that it will be operational next year. foresees a “very large” scope potential, to SMEs, freelancers and civil servants. In addition, it points out that its assignment will be negotiated in the collective agreements and will not be mandatory.

Finally, it does not contemplate that this fund absorbs the Reserve Fund or pension piggy bank, although it could incorporate that of officials.


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