Caixa Geral de Aposentações will review pensions covered by decision of the Constitutional Court – The Economic Journal

Caixa Geral de Aposentações will review pensions covered by decision of the Constitutional Court - The Economic Journal


The Caixa Geral de Aposentações (CGA) is analyzing the ruling of the Constitutional Court that implies the revision of the reforms of public officials deferred since 2013, as well as the "terms of their application," said the Ministry of Labor today.

In a statement, the Ministry of Labor, Solidarity and Social Security states that "the Government assumes responsibility for full compliance with the Judgment" and states that the CGA "is analyzing the Judgment and the terms of its application, not requiring pensioners to contact CGA services. "

At stake is a decision of the Constitutional Court which declared unconstitutional a legal rule, proposed by the previous Government, which came into force on January 1, 2013 and which determined that, thereafter, voluntary contributions to the reform would be calculated with based on the rules in force on the date of response to the request and not – as it happened until the end of 2012 – based on the rules in force on the date of application.

The difference may be relevant in cases where there is a significant time lag between the order entry and the response.

This article has now been considered unconstitutional by the Constitutional Court for violating the principles of trust and equality and, as the TC did not restrict the effects of the judgment, the decision has retroactive effect to January 1, 2013.

The decision may entail the revision of thousands of pensions that were deferred after the entry into force of that standard, taking into account the changed rules, especially in 2013 and 2014.

In 2013, the age of access to retirement without cuts in the public function passed to the 65 years. The following year, the previous government aggravated the sustainability factor and indexed the exit age for the unreformed retirement to average life expectancy. The new level was set at 66 years, but since then, there has been an average increase of one month for each year, which is why in 2019 it is necessary to be 66 years and 5 months old to have right to retirement 'in full'.

In addition to these changes, and also by the hand of the previous government, it was decided to increase from 4.5% per year to 0.5% per month the penalty of early retirements in relation to the legal age that is in force and the bonus of time that was given who asked for early retirement and had years of discounts beyond the minimum needed.



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