Early retirement due to involuntary termination at work

Effective 17/3/2013, this new form of early retirement is applicable to causal events occurring after said date, with the exception of cases in which the final provision 12.2 of Law 27/2011, of 1 August, is applicable.

Beneficiaries/requirements

Workers who meet the following requirements may access this form of early retirement:

  • They are no more than four years younger than the age required in the case in hand, without these conditions resulting in the application of age reductions that workers in certain occupational sectors may enjoy as a result of performing particularly distressing, toxic, dangerous or unhealthy work, or as regards persons with a degree of disability between 45% and 65%. 
  • Being registered in the employment offices as a jobseeker for at least six months immediately prior to the retirement application date (situation equivalent to registration).
  • They are able to demonstrate that they have made contributions for at least:
    • 33 years, without taking into account, for these purposes, the proportional amount of the extra payments or the payment of years and days of contributions for contributions prior to 1-1-67. To this end, only the period of compulsory military service or the replacement social service will be counted, with a maximum limit of one year. 
    • At least two years of the contribution period must have been within the 15 years immediately prior to earning the entitlement or at the moment when the contribution obligation terminated, if the early retirement pension is applied while affiliated or assimilated to inscription without the requirement to pay contributions.
    • In the case of workers included in the special System for employed agricultural workers, for the purposes of accrediting the minimum period of effective contributions (33 years) at least 6 of the last 10 years of contributions must correspond to periods of effective work in this special system. To this end, periods during which contributory unemployment benefits were received under this special system will also be counted.
    • For workers on part-time contracts, in order to accredit the minimum 33-year contribution period,  effective 04-08-2013, the rules established in Royal Decree-law 11/2013, 2 August will apply.
  • The termination of employment has been caused by restructuring of the business, preventing the continuity of the working relationship. To this end, the reasons for terminating the employment contract that gave the worker the right to claim early pension are as follows:

    1. Collective redundancies on economic, technical, organisational or production grounds according to article 51 of the Workers' Statute (ET).
    2. Objective dismissal on economic, technical, organisational or production grounds according to Article 52.c) of the ET.
    3. Termination of the contract by judicial decision, according to article 64 of Insolvency Law 22/2003, of 9 July.
    4. The death, retirement or disability of the individual employer, notwithstanding the provisions of article 44 of the ET, or the termination of the legal personality of the contractor.
    5. Termination of the employment contract due to force majeure justified by the working authority according to the provisions of article 51.7 of the ET.

    In the instances set out under letters a and b, the worker must also accredit, by means of incoming bank transfer documentation or an equivalent supporting document, that he/she has received the corresponding compensation as a result of the termination of the employment contract or that he/she has lodged a lawsuit claiming said compensation or challenging the termination decision.

    Receipt of compensation will be accredited by means of an incoming bank transfer document or equivalent supporting document.

    The termination of a female worker's working relationship as a result of gender violence will entitle her to claim this type of early retirement.

Amount

The pension amount is established by applying the general corresponding percentage based on the number of contribution years and the corresponding reduction coefficient to the base pension.

The resulting amount will be subject to reduction,  applying the following coefficients, depending on the accredited contribution period for each quarter or fraction of a quarter that, at the time of the causal event, were left prior to the worker reaching the legal retirement age applicable in each instance:

  1. Coefficient of 1.875% per quarter when the accredited contribution period is less than 38 years and 6 months.
  2. Coefficient of 1.750% per quarter when the accredited contribution is equal to or greater than 38 years and 6 months and less than 41 years and 6 months.
  3. Coefficient of 1.625% per quarter when the accredited contribution is equal to or greater than 41 years and 6 months and less than 44 years and 6 months.
  4. Coefficient of 1.500% per quarter when the accredited contribution period is equal to or greater than 44 years and 6 months.

With the sole purpose of establishing said legal retirement age, the age that the worker would have reached in the event that he/she would have continued making contributions during the period between the causal event and reaching the legal retirement applicable in each instance will be considered.

To calculate contribution periods, only complete periods will be considered, fractions of periods will not be considered as equal thereto.

Amount limits:

Having applied the aforementioned reduction coefficients, the resulting pension amount may not exceed the amount resulting from reducing the maximum pension limit by 0.50% for each quarter or fraction of a quarter taken early.

The coefficient of 0.50% mentioned in the above section shall not apply in the following cases:

  1. For retirement taken under the provisions of section 1, point 2 of transitory provision four of the General Social Security Act.
  2. For early retirement, relating to occupational groups or activities involving particularly distressing, toxic, dangerous or unhealthy work, or persons with disabilities.
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