The Foundation for Applied Economics Studies (FEDEA), the think tank associated with CEOE, presented this Monday a proposal to increase the labor participation of workers once they exceed 65 years of age or the legal retirement age. To this end, it has been proposed to create a new employment contract to channel the compatibility of collecting the pension and maintaining a job, part-time or full-time. Furthermore, to encourage companies to adhere to this model, they propose that the severance payment be reverted to zero, so that a minimum notice period is established in which the two parties can break the contract.
The deputy director of Fedea, José Ignacio Conde-Ruiz, explained at a press conference that the current legislation is designed so that workers retire as soon as they reach retirement age “because they are annoying” and because there is “the erroneous perception that “older people take jobs away from young people”, a fallacy that is equal to that of “immigrants taking our jobs”. For the director of Fedea, Ángel de la Fuente, it is necessary to modify the regulations on active retirement so that workers can voluntarily decide if they want to retire and at what pace, making it compatible with the collection of the pension.
The objective of the Fedea proposal is that the active retiree can continue working without any restriction: full or part-time, in the same or different company, as an employee or self-employed, without maximum compensation limits and with a pension compatible at 100%. .% with any salary or rent. As these are workers who already have the security of their public pension, a contract is proposed with a special termination regime without dismissal costs for the contracting company, in which a minimum notice period could be established for the worker and the companies to break . freely the employment relationship in the event of withdrawal by any of the parties.
Regarding social contributions, Fedea’s proposal does not rule out that the active retiree continues to contribute, but provided that once the working time has ended, the pension is recalculated upwards. That is to say, the economists have not finished detailing the proposal, but they contemplate a model in which the worker who extends his working life can choose between contributing more and then seeing his final pension increased, once he retires definitively or On the contrary, pay fewer contributions and maintain the initial pension that you would have had at age 65.
