The month of March comes with a pleasant surprise for some pensioners in our country. In this month’s pension payroll, the payment of a new supplement will begin as a result of the reform initiated by the Minister of Inclusion, Social Security and Migration, José Luis Escrivá.
The supplement in question will be used for people who have retired early between 2002 and 2021 and that they had long-term racing. The reason is that, with the new measures that have improved different reduction coefficients of these early retirements (both in their voluntary and involuntary modalities), they remain in an unequal position compared to pensioners who retire early with the benefits of the ‘Escriva reform’.
Not all pensioners who have taken advantage of early retirement can collect this supplement: only those who have careers of at least 44 years and six months or 40 yearss if they received pensions from a amount less than 900 euros per month.
To know all the details, you must go to the first additional provision of Law 21/2021, of December 28, published in the Official State Gazette (BOE), which explains that this supplement will be paid in 14 payments and will have for all purposes the nature of a contributory retirement pension, in which it will be integrated effective March 1, 2022.
Thus, from this month of March (whose pensions are usually advanced by the banks a few days before the end of the month, around the 25th depending on each bank entity) Social Security will begin to pay these supplements, which for the time being they have come to stay.
The amount of this supplement, explained in the law, is determined by the difference between applying to the retirement pension the new reducing coefficients for early retirement and the initially recognized pension. Thus, with the application of the new reduction coefficients, whenever that application entails fewer cuts, retirees would be paid those extra amounts of money that would have been granted to them in the case of retiring early right now.
How long will this plugin be paid for
However, the payment duration of this plugin is still unknown. It might not even be indefinite, since the same text of the law in which it is approved recognizes in its second additional provision that Within one year of its implementation, the measure will be submitted for review.
In the event that the payment of the supplement is not effective in compensating these early retirees, the report on the measure must contain “the list of measures and legislative changes to be approved” to alleviate this situation.
These are the changes in the coefficients of early retirement
The reduction coefficients for early retirement have been modified in what represents one of the great changes of the first leg of the ‘Escrivá reform’ of pensions. Their nature has been changed (they have become monthly instead of quarterly and applicable to the pension and not on the regulatory basis) and so have the reductions in these coefficients.
The idea of the ‘Escrivá reform’ is to discourage early retirement many months in advance and those that take place just before the ordinary retirement age, encouraging early retirement in medium ranges (between 13 and 19 months of retirement) with better reduction coefficients. advancement of retirement age).