Retirement pension reform of Law 21/2021, of 28th December

Abstract

Faithfully reaffirming what was agreed in Parliament and by Social Agents, Law 21/2021 introduces several amendments with which it seeks to delay the cessation of activity, acting on the penalising coefficients of the amount (which are redistributed, giving greater weight to the months furthest from the legal age, and less to the rest), and rewarding the delay in retirement above the ordinary age with a novel lump-sum amount. In addition, the way in which pensions are capped in the case of voluntary retirement has been changed. Furthermore, it provides the basis for a regulatory reform of reduced ages due to activity carried out or a disability. Furthermore, measures have been introduced in order to strengthen the equity with a new supplementary payment for those who have already retired early and had a long contributory period. Active retirement has been tightened, with an attempt to steer the self-employed into delayed retirement (figures for which an incompatibility regime has been established). All this makes for a reform inspired by equity rather than sustainability.