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Law 23/2013, Of 23 December, Regulatory Factor Of Sustainability And The Index Of Revaluation Of The System Of Pension The Security Social.

Original Language Title: Ley 23/2013, de 23 de diciembre, reguladora del Factor de Sostenibilidad y del Índice de Revalorización del Sistema de Pensiones de la Seguridad Social.

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TEXT

JOHN CARLOS I

KING OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following law:

PREAMBLE

I

The evolution that is being experienced in Spain with an expected increase in life expectancy and low birth rates are risks that our pension system is facing. In addition, there is an exceptional circumstance in the years to come, and it is that the so-called 'baby boom' generation will be eligible for retirement with what this means of an increase in the number of pensions for a long period of time. time (2025-2060). The unfavorable demographic trend is linked to an intense economic crisis that has anticipated several years of deficits in the Social Security accounts, which has caused added economic tensions in the short term despite the economic crisis. This is a very important financing effort stemming from the government's decision that the state budget will assume one hundred percent of the expenditure of non-contributory benefits. All of this makes it necessary that, if a public pension system is to be maintained, a system of distribution and solidarity is included, additional measures will be included in the laws in force, but limited to the recommendations of the Pact of Toledo, and that accelerate those that have already been introduced in our Social Security regulations, as is the case with the sustainability factor.

By Law 27/2011 of 1 August on the updating, adequacy and modernization of the Social Security system, various reforms of the configuration parameters were introduced into our Social Security System. of the benefits of the same, particularly affecting the scope of the retirement pension, in view of the recent demographic and economic challenges that have been observed in the environment of the countries of the European Union.

In this way, the legal status of the retirement pension was modified, inter alia, as regards the age of access to it, the calculation of the regulatory basis and the scale of the number of years (i) listed as necessary to reach 100% of the regulatory base, as well as access to early and partial retirement arrangements.

This rule is consistent with the various recommendations contained in various instruments and documents of the institutions of the European Union, such as the "White Paper 2012: Agenda for adequate, safe and secure pensions". "sustainable development", supplemented by other documents such as the "2012 ageing report" or "Pensions in the EU 2010-2050", all of which are framed within the Europe 2020 strategy, which is the focal point for the coordination of the economic policies of the Member States and the field from which a policy of guidance and coordination of efforts to address the challenge of ageing and its impact on social protection systems.

Article 8 of the Law 27/2011 of 1 August adds a new, additional, fifteenth provision to the recast text of the General Law of Social Security, approved by the Royal Decree of Law 1/1994, of 20 June, which introduces in our system the figure of the sustainability factor, and according to which, with the objective of maintaining the proportionality between the contributions to the system and the expected benefits of it and to guarantee its sustainability, to From 2027 the fundamental parameters of the system will be reviewed by the differences between the evolution of life expectancy at 67 years of the population in the year in which the review and life expectancy is carried out at the age of 67 in 2027. Such reviews shall be carried out every 5 years, using for this purpose the forecasts made by the competent official bodies.

For its part, Article 18.3 of the Organic Law 2/2012, of 27 April, of budgetary stability and financial sustainability, provides that the government, in case of projecting a deficit in the long term of the pension system, review the same by automatically applying the sustainability factor in the terms and conditions provided for in Law 27/2011 of 1 August.

II

The reforms carried out by many European Union countries in relation to the implementation of the sustainability factor, in order to ensure the viability of the relevant Social Security system in the medium and long term. period, have been carried out in different ways, affecting parameters such as the retirement age, the listed years or the amount of the initial pension, either exclusively or, in some cases, combining some of them.

In the regulation introduced by this law, the sustainability factor adjusts the initial retirement pension in such a way that the total amount that a pensioner who accesses the pension system within his/her life will receive over the course of his/her life a certain number of years, and which is expected to have a higher life expectancy, is equivalent to the one that he or she is receiving at a previous moment. This relates to the expected life expectancy at both times.

Its purpose is to maintain the proportionality between the contributions to the system and the expected benefits, guaranteeing to present and future generations the perception of adequate and adequate pensions, according to the mandate Article 50 of the Spanish Constitution.

This factor ensures the risk associated with increased longevity and adjusts intergenerational equity, albeit only in respect of retirement pensions.

Among the different mathematical formulas for their application, and for the purposes of achieving greater stability against possible annual fluctuations of life expectancy at a certain age, has been chosen to use five-year periods to determine the evolution of such life expectancy, as provided for in Law 27/2011 of 1 August.

The first year for implementation will be the financial year 2019, allowing a sufficiently broad period for potential retirement pensioners to be informed of the consequences of the implementation of the Factor practice and take action, if deemed necessary.

The introduction of the sustainability factor is a qualitatively different measure than the reform measures previously carried out, since what is being implemented is not a concrete change in the legal framework of the pensions, but an instrument of rebalancing or automatic adjustment of pensions, in the light of the evolution of life expectancy, hitherto non-existent.

Therefore, the sustainability factor is an additional parameter to those already in place for the calculation of the initial retirement pension, which helps to achieve an average pension amount compatible with the level of total expenditure (a) to provide for such pensions and to maintain the financial balance of the system in the medium and long term.

III

On the other hand, among the challenges facing the pension systems of the countries of the European Union based, as in the case of Spain, on delivery systems, has special influence (i) the 'dependency ratio', i.e. the number of persons receiving pensions for each person employed, and, on the other hand, the economic risks of a structural nature which affect the amount of the resources of the system of Social Security.

The need to guarantee the financial equilibrium of the Social Security system in the medium and long term is imperative, in the light of the following data: in 1900, the life expectancy of the Spanish With 65 years of age, it was about 10 years old, while at the present time it is 19 years, and it will continue to increase in the future, a phenomenon that causes the weight of the population over 65 years in the total population to have grown in the last few decades The report said that up to 17 percent is expected to reach 37 percent in the year 2052. In absolute figures, the number of pensions projected for the year 2052 would pass from 9 million today to 15 million.

Although, since 1997, Article 48 of the text recast of the General Law of Social Security specifies the periodic revaluation of pensions mandated in Article 50 of the Spanish Constitution by means of its In accordance with the estimated consumer price index, such a link has been questioned as a result of the problems of a demographic and economic nature.

In this sense, and in the thread of similar considerations at European level, the second recommendation contained in the Report on Evaluation and Reform of the Pact of Toledo, approved by the Congress of Deputies, in its On 25 January 2011, it was appropriate to examine, for further analysis and assessment by the Commission of the said Pact, the possibility of using other revaluation indices based, inter alia, on the growth of the wages, the evolution of the economy or the computation of social security contributions, It is advisable to take into account the effects that these indices have had on the sustainability of the pension system in the countries of our environment.

Echoing the aforementioned recommendation of the Toledo Pact, Chapter II of this Law regulates the revaluation index, which would replace, from 1 January 2014, the benchmark index that applied from 1997.

Consequently, the rate of pension revaluation is aimed at the financial sustainability of the pension system, while ensuring the adequacy of the pension system as required by Article 50 of the Spanish Constitution.

IV

This law is structured in two chapters, broken down into a total of seven articles, which must be added four additional provisions, one derogating provision and five final provisions.

In Chapter I, Articles 1 to 6 are included, in which general questions concerning the sustainability factor are regulated as such for a better delimitation of the scope of the same (definition, formula and elements). calculation, scope and review).

In Chapter II, Article 7 is incorporated, which gives new wording to Article 48 of the recast of the General Law on Social Security, amending the system for the revaluation of pensions in the system of security Social.

In the first provision, the transparent application of the sustainability factor and the revaluation index is determined, with an impact on the information to be provided to pensioners.

The second additional disposition determines the value of α for the first five-year period.

The third additional provision provides for the filing by the Government of a five-year report on the adequacy and adequacy of pensions.

The fourth additional provision is intended to provide for the opinion of the Independent Fiscal Responsibility Authority in relation to the calculated values for the determination of the pension revaluation index and the sustainability factor.

The single repeal provision refers to the repeal of provisions of equal or lower rank that contradict or oppose the provisions of the law.

Finally, in the final provisions the title of competence for the approval of this law is given, article 163 of the recast text of the General Law of Social Security is amended in order to introduce the application of the sustainability factor for the calculation of the initial retirement pension, and Article 27 of the recast text of the Law on Passive Classes of the State, approved by Royal Decree 670/1987 of 30 April, in order to include the application of the revaluation index in the determination of the amount of class pensions passive, including the minimum pension amount, and the applicable regulatory assets for the determination of the amount of the same, the Government and the Ministers for Employment and Social Security and Finance and Public Administrations are empowered to its regulatory development, with the date of entry into force at the latest, which will be, in general, the day following its publication in the "Official State Gazette", although the sustainability factor will also be available for the application of retirement pensions to be caused as from 1 January 2019.

CHAPTER I

Retirement pension sustainability factor

Article 1. Definition.

The sustainability factor is defined as an instrument which, on an automatic basis, allows the amount of pension pensions of the social security system to be linked to the evolution of life expectancy of the pensioners, through the formula that is regulated in this standard, by adjusting the amounts that will be collected by those who retire in similar conditions at different time periods.

Article 2. Scope.

The sustainability factor will apply, in the terms set out in this law, for once for the determination of the initial amount of the new Social Security system retirement pensions.

Article 3. Calculation elements.

For the calculation of the sustainability factor, account shall be taken of:

(a) The mortality tables of the retirement pension population of the Social Security system developed by the Social Security itself.

b) The age of 67 years as the reference age.

Article 4. Calculation formula.

The mathematical formulation of the sustainability factor is as follows:

FSt = FSt-1 * and*67

Being:

FS = Sustainability factor.

FS2018 = 1.

t = Factor application year, which will take values from the year 2019 onwards.

and*67 = Value that is calculated every five years and represents the year-over-year variation of life expectancy at 67 years, obtained according to population mortality tables Retirement pensioner from the Social Security system.

The*67 calculation formula is as follows for each of the five-year periods:

For the calculation of the sustainability factor in the period 2019 to 2023, both inclusive, and*67 will take the value

Imagen: img/disp/2013/309/13617_001.png

being the numerator of life expectancy at the age of 67 in the year 2012 and the denominator of life expectancy at the age of 67 in the year 2017.

For the calculation of the sustainability factor in the period 2024 to 2028, both inclusive, and*67 will take the value

Imagen: img/disp/2013/309/13617_002.png

being the numerator of life expectancy at the age of 67 in the year 2017 and the denominator of life expectancy at 67 in the year 2022.

And so on.

For the application of the sustainability factor, the first four decimal places will be used.

Article 5. Review of the sustainability factor.

On a five-year basis, the year-over-year variation of life expectancy to be considered for calculating the value of the sustainability factor will be reviewed.

Article 6. Right to the collection of supplements by minima.

The sustainability factor shall be applied without prejudice to the right of the person concerned to the benefit of the supplement to the minimum, in accordance with the provisions of the corresponding Budget Law. State generals.

CHAPTER II

Revaluation Index

Article 7. Amendment of the recast text of the General Law of Social Security, approved by the Royal Legislative Decree 1/1994 of 20 June.

Article 48 of the recast text of the General Law of Social Security, approved by the Royal Legislative Decree 1/1994 of 20 June, is worded as follows:

" Article 48. Revaluation.

1. Social security pensions in their contributory form, including the amount of the minimum pension, shall be increased at the beginning of each year on the basis of the revaluation rate provided for in the corresponding General Budget Law. of the State.

2. To this end, the pension revaluation index shall be determined according to the following mathematical expression:

Imagen: img/disp/2013/309/13617_003.png

Being:

IR = Pension Revaluation Index expressed as one with four decimal places.

t + 1 = Year for which the revaluation is calculated.

gI, t + 1 = Arithmetic moving average of t + 1, eleven values of the rate of variation as per one of the income of the Social Security system.

gp, t + 1 = Arithmetic moving average of t + 1, eleven values of the rate of variation as per one of the number of contributory pensions of the Social Security system.

gs, t + 1 = Arithmetic moving average of t + 1, of eleven values of the substitution effect expressed by one. The substitution effect is defined as the year-on-year change in the average system pension in one year in the absence of revaluation in that year.

I*t + 1 = Geometric mobile media focused on t + 1 of eleven values of the Social Security system revenue amount.

G*t + 1 = Geometric mobile media focused on t + 1 of eleven values of the Social Security system expense amount.

α = Parameter that will take a value between 0.25 and 0.33. The value of the parameter will be reviewed every five years.

In no case will the result obtained be able to result in an annual increase in pensions below 0.25 per cent or above the percentage change in the consumer price index in the year before December of year t, plus 0.50 percent.

3. For the calculation of the mathematical expression the total revenue and aggregate expenditure of the system shall be considered for non-financial operations (Chapters 1 to 7 in expenditure and 1 to 7 in revenue from the Social Security Budget) without taking into account the corresponding to the National Institute of Health Management and the Institute of Older and Social Services. For the purposes of their use in the calculation of the revaluation index, and in respect of the accounts cleared, the General Intervention of Social Security shall deduct from the preceding chapters those items which are not of a periodic nature.

However, the following concepts will not be included as system revenue and expense:

(a) Income, social security contributions for the cessation of self-employed workers and transfers from the State for the financing of non-contributory benefits, except for the financing of the allowances minimum pension.

(b) of expenditure, benefits for the cessation of self-employed workers and non-contributory benefits, with the exception of allowances for pension minimums.

4. For the purpose of estimating the revenue and expenditure of the years t + 1 to t + 6, to be used in paragraph 2, the Ministry of Economic and Competitiveness shall provide the Social Security Administration with the estimates of the variables Macroeconomic conditions for the estimation of these. "

Additional disposition first. Transparent application of the sustainability factor and the revaluation index.

The sustainability factor will be applied with absolute transparency, with the systematic monitoring of life expectancy being published. Similarly, and on the occasion of the recognition of their initial pension, the pensioners will be informed about the effect of the sustainability factor in the calculation of the sustainability factor.

In relation to the revaluation index, the value of the variables involved in their calculation shall be published annually.

Additional provision second. Value of α.

For the first five-year period the value of the α parameter will be 0.25.

Additional provision third. Report on the adequacy and sufficiency of pensions in the Social Security system.

the government will work out five years since the approval of this Law for a study, for its presentation in the Congress of Deputies and in the area of social dialogue with trade union and business organizations, on the effects of the measures taken in this standard on the adequacy and adequacy of Social Security pensions.

Additional provision fourth. Opinion of the Independent Fiscal Responsibility Authority.

The Independent Fiscal Responsibility Authority shall issue an opinion in accordance with the provisions of Article 23 of the Organic Law 6/2013 of 14 November of the creation of the Independent Fiscal Responsibility Authority, with respect to the values calculated by the Ministry of Employment and Social Security for the determination of the pension revaluation index applicable for each financial year and the sustainability factor.

Single repeal provision. Regulatory repeal.

Any provisions of equal or lower rank are repealed or are contrary to the provisions of this law.

Final disposition first. Competence title.

This Law is dictated by the provisions of Article 149.1.17. of the Spanish Constitution, which confers exclusive competence on the State on basic legislation and the economic regime of Social Security, without prejudice to the execution of their services by the Autonomous Communities.

Final disposition second. Amendment of the recast text of the General Law of Social Security, approved by the Royal Legislative Decree 1/1994 of 20 June.

Article 163 (1) of the recast text of the General Law on Social Security, adopted by the Royal Legislative Decree 1/1994 of 20 June, is worded as follows:

" 1. The amount of the retirement pension, in its contributory form, shall be determined by applying to the regulatory basis, calculated in accordance with the preceding article, the following percentages:

1. º For the first 15 years listed: 50 per 100.

2. º From the sixteenth year, for each additional month of quotation, from months 1 to 248, 0,19 per 100 shall be added, and for those exceeding the month 248, 0,18 per 100 shall be added, without the percentage applicable to the regulatory base exceeds 100 per 100, except in the case referred to in the following paragraph.

The amount thus determined shall be applicable to the applicable sustainability factor at any given time. "

Final disposition third. Amendment of the recast of the Law on Passive Classes of the State, approved by Royal Decree 670/1987 of 30 April.

Article 27 (1) of the recast text of the Law on Passive Classes of the State, approved by Royal Decree 670/1987 of 30 April 1987, is worded as follows:

" Article 27. Revaluation of pensions, economic complements and limitations on the growth of pensions.

1. Pensions of passive classes, including the minimum pension amount, and the applicable regulatory assets for the determination of the amount of the same shall be increased at the beginning of each year, on the basis of the forecast revaluation rate for pensions in the corresponding State General Budget Law. "

Final disposition fourth. Application and development powers.

The Government and the Ministers of Employment and Social Security and Finance and Public Administrations are authorized to dictate the provisions and adopt the measures they are responsible for in the field of their respective competences. necessary for the application and development of this law.

Final disposition fifth. Entry into force.

1. This law shall enter into force on the day following that of its publication in the Official Gazette of the State.

2. The sustainability factor shall apply to the retirement pensions of the Social Security system which are caused from 1 January 2019.

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this law.

Madrid, 23 December 2013.

JOHN CARLOS R.

The President of the Government,

MARIANO RAJOY BREY