Escrivá stresses that the draft Toledo Pact is a good starting point to reform the Social Security Law


During his appearance at the Commission for Monitoring and Evaluation of the Agreements of the Toledo Pact of the Congress of Deputies, Escrivá said that "this commission and social dialogue are the ideal framework to provide certainty to the pension system."

The minister has considered that "the draft recommendations of the Toledo Pact is a great starting point to develop the pension model of the future." In it, according to José Luis Escrivá, the guiding principles of the system are well defined and have sufficient elements to eliminate short-term uncertainty and face long-term challenges, so it considers that, once the diagnosis has been made, "there are the wicker to take the legislative initiative. "

A new update framework to be applied next year

Escrivá said that "our pension system is solvent, although the concern is at higher levels than in previous years." To eliminate this uncertainty, the Minister of Inclusion has asked the Toledo Pact Commission to accelerate the work so that in the next session a "new stable pension update framework" can be approved, so that apply in 2021.

In this regard, the minister has indicated that the current uncertainty has consequences for both pensioners and the system itself. On the one hand, pensioners live in a situation of insecurity about their future income when they no longer have the capacity to react. On the other, the lack of certainty can encourage early retirement and the election of minimum contributions in those groups with the possibility of choice. The priority is to agree on a stable framework for the pension update that can be applied next year. The right thing, the minister said, would be that it could be addressed "in the next session." With this, recommendations 2 and 15 of the draft would be complied with and "a good part of the uncertainty that exists about our pension system" would be achieved.

In addition, he called to follow recommendation 1 of the draft, which proposes "the separation of sources of Social Security financing […] a decisive step to recover the financial balance in the short term." In this regard, it has proposed a gradual transfer of "improper Social Security expenditures to the General State Budgets" to eliminate the deficit of the system. As indicated, "it is a more apparent problem than real", since the level of social contributions in Spain is "sufficient to guarantee the system."

The medium term challenge is manageable

Escrivá also stressed that the system has to face a significant increase in the number of retirements in the coming decades. However, "this challenge is manageable" because, despite some catastrophic projections, "the upward pressures of spending are comparable to those of countries around us and we have instruments in the current legislative framework."

In this regard, it has insisted on the need to complete the current framework "with the use of positive incentives that contribute to bringing the effective retirement age to the legal age", as indicated in recommendation 12 of the draft Toledo Pact . Escrivá has indicated that there are already mechanisms to extend working life, but they are barely used and there are indications that there is a certain lack of knowledge about them that discourages their use. Therefore, the Ministry of Inclusion, Social Security and Migration will carry out an evaluation of the current incentives "to optimize its use and, if necessary, redefine any of its elements", in addition to reviewing the regulations on early retirement Volunteers

In addition, Escrivá recalled the meaning of recommendation 19, which indicates that "the flow of migration must be channeled through mechanisms that guarantee the incorporation of migrants into the labor market." Therefore, he insisted on his proposal, announced last week at the Committee on Labor, Inclusion, Social Security and Migration, to reach a national consensus on migration, which is committed to legal, orderly and safe immigration.

Social security in the framework of collective bargaining

In addition, José Luis Escrivá has called to follow recommendation 16 of the draft, which aims to "promote, preferentially, tax systems supported by collective bargaining" progressively transferring the tax benefits of individual plans to groups.

In this sense, there has been a stagnation of collective plans, compared to the growth of equity invested in individual plans, although the profitability of the former is greater and their commissions are lower. The Minister of Inclusion has set an example of the model promoted in the Basque Country, which has a high number of participants and in which collective bargaining plays an important role with the participation of the company and the worker.

Finally, Escrivá has urged the Commission to recover the original format of the Covenant, which was reached 25 years ago, so that "we are able to transmit the content of the agreement in a simple and understandable way". Therefore, it has asked the commission to prepare an executive summary of the recommendations of the Covenant to make it more accessible for citizens.



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