Early retirement and the amount of pension

Abstract

Art. 161.2 of the LGSS contained a legal provision authorizing the Government to establish reducing coefficients of the common retirement age in force at any time in those jobs of an arduous, dangerous, toxic or distressing nature and that may be cause of a high morbidity. It was later extended to workers with a high degree of disability equal to or greater than 65%. By the Act 40/2007 4th December, a new article, 161bis, was added with the content of the prior no. 2 article including also workers with a degree of disability equal to or higher than 45%, provided that there is evidence that generally determine a reduction in the life expectancy of these people. In the opposite direction, article 163.2 of the LGSS encourages workers to delay the common retirement age recognising the person concerned an additional percentage of their pension for every year of contribution. Therefore the present commentary on the Supreme Court Judgement referred to in the title is intended to highlight the proposed options by the lower courts and the jurisprudential precedents contained in the judgements of the Supreme Court, previously issued with the purpose of determining whether the increases in the amount of the retirement pensions provided for in article 163.2 of the LGSS also apply to disabled workers after reaching the made-up retirement age by applying the reduction coefficients provided in article 161bis of the LGSS. Nowadays the content of the aforementioned articles is regulated in arts. 206 to 210 of the RDL 8/2015 30th October establishing a new combined General Law of Social Security.