CCOO Denounces That Plan Will Generate A Duality In Pension System

CCOO de Catalunya has charged this Thursday against the ‘Escrivá Plan’ to reform pensions and has denounced that its strategy to encourage delayed retirement can cultivate a duality among pensioners.

Those who already have higher incomes during their professional careers will be able to extend their careers and go into retirement with a higher benefit, while others, with lower salaries and more vulnerable to recessive cycles, will not be able to extend their working lives and will be left with a lower pension.

This is what the union denounced this Thursday at a press conference, in which it presented the campaign ” Public pensions, dignified life .” The central is openly suspicious of the proposals that the Ministry of Inclusion and Social Security has sent to Europe in the framework of the reforms of the Recovery and Resilience Plan and is preparing mobilizations, in parallel to the negotiations that are being carried out within the framework social dialogue.

“Escrivá is raising issues that are not part of the recommendations of the Toledo Pact,” denounced the head of the CCOO de Catalunya pensioners federation, Miquel Lluch .

” We are skeptical, ” declared the CCOO labor secretary, Ricard Bellera , in relation to Escrivá’s proposals to subsidize delayed retirement. “It will clearly benefit whoever has the highest income and it will not necessarily have a knock-on effect on people with low or middle income. Those 12,000 euros are not going to be available to everyone ”, he added.

And it is that the system of ‘checks’ to encourage the extension of professional careers that Minister Escrivá announced this past Monday contemplates a series of sections and only those who are in the highest incomes will be able to opt for the maximum amount. Well, according to data from Social Security itself, only 3.6% of current pensioners could have agreed to collect those 12,000 euros if they had lengthened their careers.

Compared to 42.5% of current pensioners, who receive less than 700 euros of benefit and who would have kept a check for between 4,786 and 5,264 euros , depending on the years of contribution.

Less and less young contributors
CCOO claims that the sustainability of the public pension system depends on improving the quality and continuity in employment of the population currently of working age, especially among the youngest . The union advocates promoting uninterrupted professional careers, not extending the working life of a part of the working-age population.

The weight of young contributors in the labor market has fallen by more than half in the last two decades, according to data from the Ministry of Labor, and that is that if in 2000 those under 25 years old represented 12.6% of active workers are currently 4.9% . CCOO de Catalunya warns that the aging of future pension holders endangers the sustainability of the system.

Not only the number of young contributors alerts the union, but also the quality of their contributions. These are more intermittent and short, given the high temporality and partiality that especially weighs on young Spaniards.

According to union calculations, based on INE data, the loss of purchasing power among this group since the outbreak of the financial crisis has been much more intense than among the population as a whole. Well, in real terms (that is, calibrating accumulated inflation), working people as a whole lost 5% of their purchasing power between 2008 and 2018, while this loss was 15% among young people who kept their jobs .

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