They will not see their pension cut and they will be able to collect the aid up to the ordinary legal retirement age
The Government has incorporated the new conditions of the subsidy for the unemployed over 52 years of age in the draft General State Budget for 2019. Therefore, if these public accounts are finally approved, the new beneficiaries of this aid must meet other requirements and will have new rights.
The two main changes are the access age, which goes from 55 to 52 years and the income requirement, which would no longer be calculated with the family unit and the individual income of the beneficiary would once again be used as a reference. Although this last requirement should not wait for the Budgets to be approved because it has already been applied by the Public State Employment Service (SEPE) since July, when the Constitutional Court ruled that it was unconstitutional to assess family income instead of just the of the aid applicant. These are the rest of the changes:
- The retirement. Currently, the beneficiaries of this subsidy must retire as soon as they reach the age and requirements to receive a contributory pension in any of its modalities. This forces them in most cases to retire early, with the consequent cut in the pension for the rest of their lives (the amount is reduced by around 6% for each year that the retirement age is anticipated with respect to the ordinary law). The new wording of the law, however, specifies that the subsidy for people over 52 years of age "will be extended, at most, until the worker reaches the ordinary age required in each case to cause the right to a contributory retirement pension" . From this text it can be deduced that the beneficiary may be receiving the subsidy and making contributions until they can retire in an ordinary and not early manner, with which they would retire without diminishing their benefit.
Quoted time. While a worker receives the subsidy for those over 52 years of age, the State is in charge of contributing to Social Security for him. Now, this quoted time serves to expand the regulatory base and the applicable percentage of the retirement pension. The novelty at this point will be that with the new law, the time for collecting the subsidy will compute to calculate the pension "in any of its modalities, as well as to complete the time necessary for access to early retirement."
- Quoted amount. The contribution made by the State for the recipients of this subsidy will rise from 100% to 125% of the minimum contribution base at all times.
- Amount of aid.Another change introduced in the Budget project that affects this subsidy is the increase of the 2% of the Public Multiple Income Indicator up to 548.60 euros per month. The law establishes that the amount of this aid for older unemployed will be 80% of the Iprem that is set each year. Therefore, the increase in this indicator also increases this subsidy from the current 430 euros per month to 438.8 euros per month.
- Modifications. The current regulations allow the Government, without modifying the law, to change the collection time of this subsidy or its amount depending on the unemployment rate or the possibilities of financing the aid. But the new regulations that will be approved if the 2019 public accounts receive the green light, directly eliminates this power of the Government to modify the amount or time of collection of this subsidy, without the need to change the legislation.