Revaluation of pensions - Minimum supplements.

What characteristics do Compulsory Elderly and Disability Insurance (SOVI) pensions have if they are present with a widow's pension in the system?

  • The SOVI pension will totally or partially absorb any minimum supplement the system's widow's pension might have.
  • The widow's pension and the SOVI pension total cannot be more than double the current minimum widow's pension of recipients aged 65 or over, when calculated annually. Should the aforementioned limit be exceeded, the SOVI pension will be reduced accordingly.

What type of pensions or items in the pensions are not subject to the maximum limit established?

For the purposes of applying the maximum limit  of the pension established in the General State Budgets Act, the following will not be calculated:

Is the theoretical age or real age considered for access to the "minimum supplements"?

As a general rule, it is necessary to prove the real age established in each case. However, in those groups that have reduction coefficients of the retirement age according to the activity carried out, the age of 65, for the purposes of determining entitlement to minimum supplements, will understood to be completed when, as a result of applying these coefficients, the resulting age is either equal to or greater than 65 years old. This rule will be applied in special retirement cases at 64 years old.

For permanent disability pensions, in relation to minimum supplements, the age requirement will be applied as follows:

  • Calculation of 65 years old for total PD pensions: the theoretical age will be considered.
  • Calculation of 60 years old for qualified total PD pensions: the real age will be considered.

Is it possible to expressly waive the right to "minimum supplements" to access another Social Security or non-Social Security benefit?

Yes, when opting for unemployment benefit, as well as a non-contributory pension for a degree of disability equal to or greater than 75%.

When are the "minimum supplements" cancelled or used up due to the recognition of a new pension which is concurrent with the Social Security pension?

If there is concurrence with a contributory pension in the system, the cancellation of the economic effects of the minimum supplements recognized will occur from the first day of the month after the date of the determination of the concurrent benefit or, where appropriate, the determination resulting in the increase of the amount of the other pension.

In cases where the pension is not dealt with by the management bodies (INSS and ISM), the economic effects will occur from the first day of the month after the date of the determination of the unrelated benefit that features in the Register of Public Services.

What effect does a variation in the pensioner's income in the current year have on the "minimum supplements" if the income exceeds the limit established?

The cancellation of minimum supplements from the 1 January, irrespective of whether the income declaration for the first quarter of the year has been presented or not.

For the purposes of the "minimum supplements", what work-related income is considered when carrying out business, professional or agricultural activities?

Income relating to net profits, excluding expenses deductible from these activities in accordance with tax law, will be calculated.

Only 60% of the capital received, where appropriate, will be calculated in cases where there are profits resulting from pension funds, and so long as more than two years have passed since the first contribution to the fund.

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