Special E.R.E. Agreement Novation from the age of 61/63.

From the date on which the employee reaches the age of 63, or 61 in the case of a collective redundancy scheme (E.R.E.) on economic grounds, the special E.R.E. agreement will be automatically novated; the company will cease to be obliged to make payments under it, and the employee will assume the obligation to pay the contributions corresponding to this special agreement from that date.

Where a special E.R.E. agreement has been combined with the pursuit of employment, the Social Security General Treasury will determine the amount by which the contribution paid by the employer corresponds to that payable in respect of the work carried out by the employee, in order to apply it to the new special agreement.

Subject responsible for the payment

Contributions under the special scheme will be payable by the employee. Natural or legal persons who voluntarily assume this obligation with the express authorisation of the said party may act as substitutes.

Contribution basis

Generally speaking, the contribution basis under the new special scheme is the same as that under the E.R.E. special scheme under which you were registered and for which the company made payments.

However, should there be an associated additional clause, the contribution basis for the new special agreement shall be the sum of the contribution basis for the previous E.R.E. special agreement and that of the aforementioned clause.

For further information on the additional clause, please refer to the section entitled “Special E.R.E. Agreement. Company > Contributions > Voluntary adjustment of the contribution basis following registration in the special scheme. Additional clause”

Determination of the payment due

The calculation of the payable due is the standard method laid down for the ordinary special agreement.

Method of payment

The method of payment for this special agreement is by direct debit. Bank account details must be provided to the Social Security General Treasury before the 10th of the month following the date on which the person reaches the age of 63, or 61 in the case of a collective redundancy scheme (E.R.E.) on economic grounds.

The bank account for the direct debit of contributions under the new special scheme must be registered via the “Direct Debit” service available on the Social Security Online Portal, under the Citizens/Contributions section.

Regulatory Payment Period

The deadline for making the payment is the calendar month following the month to which it refers. For example, the payment for January is made in February.

Registration in this special scheme is compatible with:

• Unemployment benefit for those aged 52 and over.
• The carrying out of an activity where the contribution basis is lower than the contribution basis under the special agreement.

The special agreement shall terminate for the same reasons as the ordinary special agreement.

However, where the special agreement arises from a collective redundancy plan (E.R.E.) approved prior to 9 April 2019, the special agreement shall be terminated for any of the following reasons:

• Carrying out an activity whose contribution basis is equal to or higher than the contribution basis of the special agreement.
• Due to acquiring the status of retirement pensioner or permanent disability pensioner.
• Due to death.
  

• Article 20 of Order TAS/2865/2003, of 18 October, which regulates the special agreement in the Social Security System.
• Thirteenth Additional Provision of Royal Legislative Decree 8/2015 of 30 October, approving the consolidated text of the General Social Security Act.