In 2020, the requirements for access to retirement will change again, in application of the transitional rules introduced in the LGSS by Law 27/2011. The changes affect the retirement age, which is postponed, and the amount of the pension, as the calculation of the regulatory base takes into account one more year of contribution and the percentage applicable to it is modified.
Eligibility for retirement 2020
Law 27/2011 introduced important changes to the regulation of retirement pensions, affecting issues such as the ordinary retirement age; the calculation of the regulatory base of the pension and the percentage applicable to it; early retirement and partial retirement. The reform, which came into force on 1-1-2013, established transitional rules until its full application in 2027.
During 2020 the following rules apply:
A) Retirement age. The ordinary retirement age is set at 65 years and 10 months, provided that at least 15 years of contributions have been credited. However, those who have at least 37 years of contributions are allowed to retire at 65 years of age (LGSS trans. 7 ª). This change also delays the age of access to early retirement, as it is linked to the ordinary retirement age (4 years younger than the ordinary retirement age in the case of forced early retirement, and 2 years younger than the ordinary retirement age in the case of voluntary partial retirement).
In order to access partial early retirement in 2020, it is required to have reached 61 years and 10 months of age if at least 35 years of contributions have been credited, or 62 years and 8 months of age if 33 years of contributions have been credited (LGSS art.215 and trans.disp.10ª). There are also changes in the contribution of the partially retired worker. In 2023, the partially retired worker must pay the same contribution base as would have corresponded to full-time; until then, a transitional period is established whereby, during 2020, the company and the worker must pay 85% of this contribution base (LGSS trans.disp.10ª).
B) Regulatory base of the retirement pension. In 2020, this is calculated by dividing the contribution bases during the 276 months immediately prior to the month before the qualifying event by 322. In this way, the last 23 years of contributions are taken into account, one year more than in 2019 (LGSS trans. 8ª).
C) Percentage applicable to the regulatory base. From 1-1-2020 and until 31-12-2022, a total of 36 years of contributions will be required to reach 100% of the regulatory base (6 months more than in 2019). During this period, the amount of the retirement pension will be determined by applying the following percentages to the regulatory base:
- for the first 15 years of contributions: 50%;
- for each additional month between months 1 and 106: 0.21%;
- for the following 146 months: 0.19%.
On the other hand, the possibility of accessing retirement with the requirements and conditions prior to the 2011 reform (Law 27/2011) is extended until 1-1-2021 for people whose employment relationship had been terminated before 1-4-2013 and had not been included in any Social Security scheme, or had been terminated or suspended before that date by collective bargaining agreements or in employment regulation proceedings (LGSS trans.disp.5ª.5 redacc RDL 18/2019 disp.final 1ª).