Toledo Pact approves pension reform proposal to Spanish government

[News_Editor]

Toledo Pact approves pension reform proposal to Spanish government

2010-12-30 02:02:16 GMT+7 (ICT)

MADRID, SPAIN (BNO NEWS) -- The Toledo Pact on Wednesday approved by 36 votes against two its pension recommendations to the Spanish government to be implemented in the system reform, El Pais newspaper reported.

The Toledo Commission approved a report in which it is stated that raising the age for retirement is not needed, in contrast with the proposal from President Zapatero who insists in setting the retirement age at 67.

The document includes 21 points that can be implemented in Zapatero’s pension reform. The report will be now discussed in the Spanish Congress on January 25. However, some politicians believe that the government will not implement this recommendations as the bill will be presented on January 28 and it might have been written by this moment.

According to the report, an rise in the retirement age from 65 to 67 is not needed as the pension reform is intended to secure the future of the system by allowing the future generations to continue having the existing benefits.

Another proposal stemming from the Toledo Pact approval, is to facilitate retirement for 65-year-old citizens who has contributed to a retirement fund for a long period of time. This measure would diminish the effect of the intended raise to the retirement age as less workers would be affected.

Half of the people who retire has more than 36 years contributing to a retirement fund, according to the Labor Ministry. However, the ministry said that this barrier must be improved in order to keep the retirement age at 65.

Among the remaining recommendations approved by the Toledo pact are modifying hiring methods for people working in family businesses, recognizing women’s housework and child care, and improving benefits for widows.

The Spanish pension reform comes after the France endured a series of civilian unrest and union strikes following the announcement of a similar reform. The project was proposed by French President Nicolas Sarkozy and approved later by the National Assembly despite massive opposition.

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