“The emergency pension renewal increases its weight in effective spending: in 2017, the first year of implementation, it was 77 million euros, in 2018 it more than doubled to 207 million euros, and in 2019 and 2020 it was 207 million euros, if by 338 and 449 million, respectively. 2021 saw the biggest increase, with an increase of 298 million (+66.4%), which is 747 million euros.” Council of Public Finance warning in its report on the evolution of the social security budget and the Caixa Geral de Aposentações (CGA) in 2021.
In view of this scenario, the body headed by Nazaré da Costa Cabral believes that the rules for these renewals should be changed, arguing that it would be more desirable to make the extraordinary renewal rule permanent in order to make the financial management of the pension system more predictable // Social Security.
And he adds: “It is always preferable to have a stable legal framework with rules of objective and automatic application than discretionary and casuistic interventions by the political decision maker, which in the extreme can jeopardize the philosophy and ultimate goals of the legal framework. existing.”
As a reminder, in the state budget for 2021, an increase of up to ten euros is provided for all pensioners whose total pension is equal to or less than 1.5 social support index (658.2 euros). That year, the government projected an increase of 99 million euros, but in the end they increased by 298 million.
A new extraordinary upgrade to ten euros is planned for this year, this time for pensioners who earn up to 1108 euros (2.5 times the social support index). Payment will be made retroactively once the document, which was already approved on Friday, comes into effect.
According to the CFP, social security spending increased by 2.7% (or 779 million euros) compared to the previous year, higher than the 0.9% provided for in the state budget for 2021. This performance still reflects the impact of some of the measures taken in the aftermath of the pandemic crisis (around €1,919 million) as well as increases in pension spending. This increase of 474 million euros (or 2.6%) is “mainly justified by the higher costs associated with part of the emergency pension renewal”.
Value increases but number decreases The report also indicates that the average pension awarded in 2021 by the Caixa Geral de Aposentações increased by 38 euros to 1336 euros, but the number of new pensioners decreased.
This increase in value “was mainly attributable to new pensions awarded to pensioners and pensioners from the central administration, which accounted for 42.3% of the total new and old-age pensions awarded by the CGA in 2021, and the average of which was 2003, 40 euros.
The average number of pensioners last year decreased by 718 people compared to 2020 to 481,078 people “due to the combined effect of a decrease in disability pensions by 2,119 people and an increase in pensions for old age and other reasons by 1,401 people.”
