The Provincial Directorate of the Managing Body, the National Institute of the Social Security (INSS) or the Social Marine Institute (ISM) responsible for managing benefit payments.
When the Managing Body is able to review the decision on the granting of benefits directly if omissions or inaccuracies are detected on the declarations made by beneficiaries, or when material, factual or calculation errors need to be corrected.
When undue benefits have been received, caused by initial pension payments for beneficiaries who have been receiving another pension simultaneously, minimum supplementary payments, pension revaluation, simultaneous benefits and maximum limits.
Compensation between benefits for temporary disability and permanent disability, received during the same period, and between permanent disability benefits in the case of degree of disability review.
Undue benefits that have been received due to Unemployment.
When undue benefits are collected as a consequence of the review of a previously recognised benefit, and the debtor is simultaneously the creditor of economic benefits managed by the management entity that carries out the review, the corresponding discounts will be applied to these benefits in order to pay the beneficiary's debt, except if the debtor chooses to pay off the debt in a single payment.
It is started by agreement of the Managing Body as soon as the existence of the debt is discovered. The interested party will be notified of this in order to keep them duly informed and, if they wish, so that they can appear and argue their position.
It will be processed as a single file. Before drafting the decision proposal, there will be a hearing with the interested party granting them a 15 day period, counting from the day after the notification to submit the relevant statements or documents.
If appropriate, at the same time there will be a notification with a proposal for debt repayment, stating the amounts to be discounted in the successive monthly benefit payments, so the interested party may declare his/her agreement to these terms, or may propose an alternative, as long as the amount of the alternative is higher than what is established for the application of discounts.
If, at the time of drafting the repayment proposal, the Managing Body deems it necessary to extend the 5 year debt cancellation deadline in order to guarantee that the pensioner receives their non-contributory pension, it will request documentary evidence of all the income received from work or capital gains, in order to check whether the pensioner meets the requirements for the deadline extension to pay off the debt.
Once the statements or documents have been received, or once the deadline for the interested party to argue its case has passed, a justified decision, will be made within a maximum period of 3 months, counting from the date of the agreement that started the procedure, expressly stating the following details:
Causes, period and amount.
New amount to be received and date of the economic benefits.
Precedence and procedure to make the return, discount amount and periods.
Period and management entity to which the interested party may file a prior claim.
When the decision is announced, the debtor will be informed of the possibility to voluntarily pay the full amount of the debt in a single period, within the 30 days following the notification. Once the payment is made, a receipt will be given to the interested party.
If the deadline passes and payments are not made, the fixed discounts that appear in the management entity resolution will be applied. Regardless of this, the debtor may pay voluntarily the remaining debt in a single payment at any time.
If it is not possible to apply the discount procedure
or if, in the course of its application, it is not possible to continue applying discounts in order to pay off the debt in the corresponding period due to the death of the debtor, the termination of the benefit or any other cause, the Managing Body will inform the TGSS of the final decision
on the admissibility of the repayment and state the amount pending payment, so that they can start collection proceedings
Rules for discount application:
1.- If discounts have been applied to the successive monthly benefits that the debtor was entitled to receive in order to pay off the debt, the following percentages will be taken into account:
Between 21% and 30% of the total amount of the benefit or benefits being duly received, if the amount of said benefit or benefits is greater than or equal to half of the maximum pension
established at that time.
Between 15% and 20%, if the amount of the benefits that are being duly received is less than half of the maximum pension, or greater than or equal to the minimum retirement
pension for persons older than 65 with a dependant spouse.
These percentages may be increased if the file includes a statement from the interested party expressing agreement, and when the debtor voluntarily requests it in order to repay their debt early, once discounts have started being applied.
The amount of the benefit or benefits received by the debtor is therefore understood as referring to the gross amount.
2.- If the debtor receives more than one Social Security benefit:
If the amount of the benefit that created the debt is less than the amount of the discount, the latter will be applied to all benefits received in proportion to its amount, guaranteeing the amount of non-contributory benefits in each one.
Debt repayment deadline:
1. When the application of the aforementioned percentages is not sufficient to repay the entire debt in a maximum period of 5 years, counting from the date the discounts came into effect, the Managing Body will increase the amount of the discounts by the amount needed to repay the debt within this period.
2.- When, after the corresponding discounts have been applied, the net amount received by the pensioner is less than the amount, calculated on an annual basis, of non-contributory retirement and disability pensions the Managing Body:
will extend the 5 year period for repaying the debt by the time required to guarantee, as a minimum, the amount of the non-contributory benefits, as long as the pensioner does not receive income from capital gains or personal work exceeding the income limit
established to grant supplementary benefits to contributory pensions below the minimum amount. The pensioner's income from the previous year will therefore be used as a basis for the calculations.
3.- There will be no extension to the 5 year period to pay off the debt:
If the pensioner in debt does not receive an income greater than the established limit and the gross amount of the contributory pension(s) they receive is less than or equal to the non-contributory pension amount. In this case, the Managing Body will notify the TGSS of the decision stating this fact and of the outstanding debt amount, so that it can begin the general debt collection procedure.
4.- The guarantee for non-contributory pension amounts is not applicable for persons that receive periodic benefits.
Recognition of new benefits assigned to the debtor:
When, for the debt repayment, the general procedure provided for in|art. 102 of the General Regulations on the Collection of Resources for the Social Security System was being applied,
the Managing Body:
will inform the TGSS of the granting of the new benefit, prior to issuing the corresponding decision.
If, in order to repay the debt, it was able to apply the discount procedure and the Treasury has not started the corresponding enforcement procedure, it will request that the Treasury stops its actions in order to apply the corresponding discounts to the new benefit, taking into account the special procedure.