Fedea calls for a gradual increase in pensions between 2.5% and 11%

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More than half of the beneficiaries, those who earn less than 1,000 euros per month, would benefit from this new proposal that would save more than 6,000 million euros

A progressive and selective increase in pensions, with an increase between 2.5% and 11%, depending on the amount of the beneficiaries’ benefits, which would save more than 6,000 million euros in the social security coffers. This is the new revaluation proposal that Fedea is defending, which it sees as “more fair” and “solidarity” than the government-approved proposal, meaning an 8.5% increase in all pensions next year, depending on average annual inflation.

This think tank argues in favor of “rephrasing” the new pension revaluation mechanism adopted less than a year ago, as it believes it should be “asymmetric”, i.e. not only take into account the rise in prices , but also with the fall in prices; and similarly, it should have “escape valves” for situations like the current one, where inflation is skyrocketing and an automatic increase in all pensions could be “harmful” to the economy, they warn.

The foundation proposes that, in exceptional situations, the mechanism should determine that the revaluation takes place gradually, in the sense that pensions exceed a certain threshold in the Income Agreement and, just as wages are required, do not regain purchasing power all at once, but spread it out over the years. time.

Pending the reformulation of this automatic revaluation tool, Fedea specifically proposes that minimum pensions (which are below 800 euros per month) rise even above inflation, ie 11%; benefits between 800 and 1,400 euros per month gradually increase between that 11% and a maximum of 2.5%; while pensions remain above 1,400 euros with a 2.5% increase, the same increase adopted for civil servants.

With this approach, just over half of the nine million pensioners (52.5%) would gain from the expected increase for next year: those on benefits of less than €1,000 a month, whose increase would be between 8 .9% and 11% . On the contrary, the remaining 47.5% would lose compared to the increase proposed by the government, those plus those would have nearly 2.8 million seniors with wage bills of more than 1,400 euros and an increase of 2.5%.

The cost of this measure would amount to 8,187 million euros, which would mean a saving of 5,000 million, a saving that would even rise to around 6,225 million euros if the passive class pensions are also included.

Source: La Verdad

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