What is the triple lock on pensions?

What is the triple lock on pensions?

New retirement law 2021

What will be the ‘paguilla’ of January 2022A separate case will be the ‘paguilla’ that pensioners will receive next January 2022. This has to do with an extra pay that is calculated on the basis of what inflation rises with respect to what was foreseen. During the 2021 fiscal year, pensions went up 0.9%, but skyrocketing inflation has meant that the purchasing power of retirees has decreased. Escrivá estimated that this could cost

a cost of 1.9 billion euros. But specifically, Social Security plans to pay 1.4% of the annual pension to each pensioner, so that someone who earns 1,300 euros may receive a payment of 240.

How much will minimum pensions rise in 2022?

Contributory pensions will rise by 2.5% in 2022, while minimum and non-contributory pensions will increase by 3%. This is how the pension amounts will be this year.

How much have pensions been revalued in 2021?

But to this must be added a 1.6% deviation. This means that, as 2021 the maximum pension was €2,707.49 per month (€37,904.86 per year), now – with 2.5% plus CPI, plus 1.6% – it is €39,468.66 per year. Or €2,819.19 per month.

What do pensions look like in 2022?

The Council of Ministers has approved the revaluation of pensions for the year 2022, which involves a 2.5% increase for contributory pensions and State Pensioners and a 3% increase in minimum and non-contributory pensions, including the Minimum Vital Income.

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Royal Decree-Law 20 of 2020

As of December 31, 2020, the pension funds managed by the AFPs reached a value of $316.9 trillion pesos, equivalent to 32% of Colombia’s GDP. Of this money, 59% (i.e., $186.3 trillion) is the investment made in companies operating in Colombia.

At the end of 2020, the banks of the AVAL Group (Bogotá, Occidente, AV Villas and Popular) and the GEA (Bancolombia) reached $13.7 billion in investment by the AFPs. If we add to that the investments in the other companies of each conglomerate, $23 billion of Colombians’ savings were invested in the portfolio of GEA companies and $6 billion in the companies belonging to the AVAL Group.

The legislators were aware of the temptation for a builder, for example, to have in one drawer the needs of his own projects and in the next drawer the money for Colombians’ pensions, and so on, in the new regulation, signed in 2010 by Álvaro Uribe and his Minister of Finance, Óscar Iván Zuluaga, ratified “the prohibition to invest in assets, participations and securities whose issuer, acceptor, guarantor or owner is the AFP, its affiliates or subsidiaries, its parent company or its affiliates or subsidiaries”.

How much will maximum pensions rise in 2022?

As of January 1, 2022, pensions will rise by 2.5%, in accordance with the new revaluation formula set forth in the pension reform bill, which takes into account the 12-month average year-on-year CPI (from December of the previous year to November of the fiscal year in force).

When do they pay the 2021 pension arrears?

It will be in the second half of January when they will receive a payment to compensate for the deviation in prices, since the revaluation of 2021 was lower than the CPI recorded this year, as confirmed Wednesday by the Ministry of Inclusion and Social Security, once the final inflation figure of …

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How much will non-contributory pensions rise in 2021?

Specifically, this 2.5% increase is the result of the average CPI between December 2020 and November 2021. Passive class pensions will also rise by 2.5% this year.

Royal Decree-Law 03 2021

Pensions paid by the Social Security system in its contributory modality, as well as those of State Passive Classes, will increase in 2022 by a percentage “equal to the average value of the inter-annual variation rates expressed as a percentage of the Consumer Price Index of the twelve months prior to December 2021”. That is, the average inflation rate from December 2020 to November 2021, taking the central column of the INE tables that you can consult here. Therefore, they are revalued according to the CPI, which tries to “guarantee the purchasing power of pensioners”.

However, the amounts of minimum pensions experience a slightly higher increase (3%). And for non-contributory disability and retirement pensions, a 3% increase has also been set with respect to 2021. (In 2021 they only grew by 1.8%).

But be careful! In practice, and hence the publication of Royal Decree 65/2022, to that 3% must first be added a 1.6% deviation, from which it follows that the real increase is approximately 4.6%. Both in the minimum pensions and in the disability and retirement PNCs.

When are pensions updated?

Pedro Sánchez announced this Saturday that the Council of Ministers will approve next Tuesday the update of pensions for the year 2022. The President of the Government has assured that between 2021 and 2022 the Executive will allocate a total of 6,500 million euros for the “dignification” of pensions.

How much will the payout be in 2022?

Retirees will receive up to 267.6 euros, while widows will receive 166 euros.

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When is the small payment due?

The exact date varies depending on the bank where each pensioner has direct debit payments, but in most cases it will be received during the second half of January and will most likely coincide with the payment of the first pension of 2022, which the Social Security will make on the 25th.

Retirement pension application

Also, due to the fact that the Executive approved a pension increase of 0.9% for 2021 and the year-on-year CPI has been 2.5%, in mid-January pensioners are going to receive an extra income of 1.6%. This is the so-called paguilla, which will be paid to pensioners in the second half of January as confirmed by the Ministry of Inclusion, Social Security and Migration.

Contributory pensions will experience an increase of 2.5% in 2022. For the calculation of this revaluation, the average CPI between December 2020 and November 2021, less than half the inflation in that month, is taken as a reference.