New Pension Supplement For Early Retirees

Early retirement has undergone some changes as a result of the ‘Escrivá reform’ of pensions, which in its first leg modified the reduction coefficients to which pensions are subject with the aim of cutting them to compensate for the advance in retirement. These reductions are in most cases less than the previous ones, except in the cases that you want to encourage (many months in advance or the months immediately prior to ordinary retirement).

These new reductions create differences with workers who retired early in previous years. These people anticipated their retirement with very different conditions, a reality that the regulations have not ignored. In fact, it has responded to it with a kind of compensation to reward all those people who may be harmed by the new reductions in comparison with the new early retirees.

Everything appears included in Law 21/2021, of December 28, the same that includes the new reducing coefficients of the pension in early retirement. In its first additional provision ( you can consult it at this link in the Official State Gazette ) the payment of a supplement to the pension of workers who retired early in the last two decades and who, despite having professional careers, is recognized. long-term, they did not have a large pension.

Specifically, it is a supplement whose amount results from calculating the difference “between the amount resulting from applying the reduction coefficients provided for in this regulation to the initial pension and the initially recognized pension “, as explained by the law. In practice, it is the payment of the difference between what they charge and what they should charge after the ‘Escrivá reform’.

The supplement is paid monthly and is integrated into the retirement pension, so that “it will have the nature of a retirement pension and will be integrated into it for all purposes”, as reported by law. Therefore, like retirement pensions, it will be paid in 14 installments.

Requirements to collect the pension supplement
To collect this supplement, early retirees must meet a series of requirements explained in the law:

-In the first place, they must have agreed to early retirement between January 1, 2002 and December 31, 2021.

-It is mandatory that either they have a career of at least 44 years and six months or that, with a career of at least 40 years, they have a pension of less than 900 euros per month.

-It is essential to prove that they receive a lower pension compared to the one they would have if the new reduction coefficients were applied to them.

How long is the pension supplement charged?
Despite the recognition of this supplement and its integration into the retirement pension, its collection is not indefinite, at least not yet. The reason is that the Government has given itself a period of one year from the entry into force of the norm to evaluate the effectiveness of this measure.

In accordance with the law, it is the task of the Government to prepare a report in which the impact of the complement is collected and, in the event of a negative opinion, “the list of measures and legislative changes to be approved”, as explained in the additional provision second of the law.