Approval end of sustainability factor and extension to public function – The Economic Journal

Approval end of sustainability factor and extension to public function - The Economic Journal

The parliament approved today the end of the sustainability factor, that is, the cut of 14.5%, next year for pensioners who at 60 have at least 40 years of discounts, with the favorable votes of PS, PCP and BE , in the context of the vote in the specialization of the proposals of law of the Budget of the State and the Great Options of the Plan for 2019, in the Commission of Economy, Finances and Administrative Modernization. They voted against the PSD and CDS.

The MPs also approved the amendment proposal of the PS that extends the measure to the state pensioners under the same conditions. This means that the double penalty of long careers comes to an end.

"By the end of the first half of 2019, the Government presents the legislative proposals, making the necessary adaptations necessary to extend the new flexibility regime for the age of access to pensions, provided for in Article 90, namely the convergent regime "According to the proposal.

In 2019, the sustainability factor for 63-year-old retirees will be eliminated, and at 60 they will have 40 years of discounts and then in October for 60-year olds and 40 rebates.

In the document sent to the deputies earlier this month, Vieira da Silva's office recalled that as of January, there is a new social security reform anticipation scheme that annuls the cuts for pensioners who at 60 years of age have at least 40 contributions.

This model will take effect in two phases. One from January for pensioners aged 63 or over, being extended in October for those who are 60 years or older, according to Lusa reported at the time.

The Ministry, however, stated that the current regime allows for retirement from the age of 60, since it has 40 years or more of Social Security discounts, but with a double cut: the sustainability factor plus 0.5 % for each month (6% per year) in anticipation of the legal retirement age that next year will be 66 years and five months. In practice, anyone who has, for example, 61 or 62 years and at least 40 contributions may retire in 2019, but with both cuts.

Both the Left Bloc and the PCP had already warned of the need for the Government to clarify this matter in the OE2019 and the minister had already admitted in parliament that the current regime would remain.

A few weeks ago, Vieira da Silva said that "anyone who wants to ask for an early retirement but does not comply with the requirements of the new regime maintains the possibility of access to the regime in force in 2018", see the explanatory note sent to the scope of the State Budget's special assessment for 2019 (SO2019).

*with Lusa

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