Y SEGURIDAD SOCIAL
Option Right / Payment
Workers that, meeting all the requirements to be entitled to a retirement pension at the time the Law 24/1887 about Consolidation and Rationalisation of the Social Security System, from 15 July, came into effect (5 August 97), have not yet claimed their pensions, even if they continued to work, may make use of the previous legislation to obtain their retirement pensions under the same conditions that they would have got had they claimed their benefits on the day prior to the enforcement of the new law.
If workers opt to make use of the legislation prior to the above-mentioned law, any contributions made by them after 5 August 97 will not be included in the calculations, nor will they be returned.
The option they choose will be irrevocable.
Pensions are paid in 14 instalments per year, which correspond to one paycheque per month plus two extras, which are given monthly along with the June and November pay cheques and are for the same amount of the regular monthly pay.
In the cases of initial recognition of a pension, or restarting pensions, as well as in cases or pension suspension or extinction, the corresponding extra pay will be calculated in sixths.
minimum amounts are agreed according to the age and family dependents.
The pension, including the minimum pension amount, will be increased at the start of each year, according to the Consumer Price Index that is predicted for it.
Retirement pensions are taxable in the terms established by personal income tax laws (IRPF), and subject to the applicable contributions and withholdings.