Social Security already applies the criteria of the Constitutional Court to retirement applications for part-time employment
The INSS already applies the criteria of both pension applications that are submitted with a partiality index and those already recognized for part-time employment, and whose resolution is not yet final through administrative channels.
The Institute will automatically review around 8,500 of those already recognized and with a non-firm resolution, of which around 2,200 can be increased by around 4%.
He BOE of August 12 published the ruling handed down last July, by which the Constitutional Court (TC) declared unconstitutional and void the method of computing part-time contribution periods for the purpose of determining the amount of the retirement pension. This formula, in force since 1998 and adapted in 2014, is included in the revised text of the General Social Security Law (LGSS).
The Constitutional Court considers unjustified the double penalty that the current calculation formula supposes in the right to retirement of those who have worked part-time. According to the text, the way of computing periods worked partly is penalized, when the contribution bases used to calculate the pension are lower than those that correspond to full-time, since they correspond to part-time wages.
In addition, the Court considers that there is indirect discrimination based on sex, given that part-time employment is performed mainly by women (According to data from 20, 63% of part-time retirements corresponded to women and only 37% to men). .
One more 4% for 2,200 pensions
As already indicated, the INSS estimates that it will have to review around 8,500 recognized pensions -with no final resolution- of which around 2,200 may be increased up to 4%. The rest will maintain the initially recognized amount, for different reasons: close to 3,500 will not have an increase in amount for having initially reached 100%; Approximately 800 will not have an increase because the part-time shift was 67% or higher and in these cases, the application of the coefficient of 1.5 converts the part-time shift into full-time; finally, close to 2,000 perceive a complement to minimums, which will be absorbed by the rise.
The Institute has estimated these figures taking into account the statistical data of the 2018 financial year. The 24% of the people who request the retirement pension accredit part-time jobs at some point in their working life.
Everything prepared at the INSS
The National Institute of Social Security has adapted the computer applications for recognition of the retirement pension in record time. For this reason, since the publication of the ruling in the BOE, the new formula has been applied both for the calculation of new pension requests with part-time contributions and for the review of those already recognized (without a final resolution).
In the month that has elapsed since the ruling became known, the National Institute of Social Security began to work against the clock so that on the date of publication of the ruling in the BOE, everything would be ready.
The complexity of the process resided in the fact that the new way of calculating implies a different treatment from what had been done for the days of contribution that can be calculated for the percentage to be applied to the regulatory base of the pension, in cases of part-time employment.
The days that until now were computed -reduced based on the partiality of each assumption and subsequently increased with the application of the coefficient 1.5- are now computed as calendar days. It was also necessary to complete the necessary developments so that the pension database allows for the review of the files with a non-firm resolution in administrative channels, modifying the criteria for calculating the number of days contributed in all these cases.
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