The pension calculation period is set to grow to 29 years, with an exception for the two weakest years recommended by the government for social workers. Beginning in 2027 through 2038, this change will add four months per year, as outlined in the executive draft for the second phase of pension reform reviewed by Europa Press.
The Ministry of Inclusion, Social Security and Immigration proposed changes to how the pension period is measured. The period can be either the last 25 years of contributions amounting to 300 months or a 29 year contribution span totaling 348 months, excluding the two weakest years totaling 24 months. Practically, the second option would result in a calculation over 27 years or 324 months.
Therefore, individuals can choose between the existing 25 year contribution window or a 29 year window that removes the worst two years. If the 27 year option proves more advantageous, the 25 year calculation would be retained instead, minus the two weakest years.
The dual regime for the calculation period will operate for 20 years. Starting in 2044, pension calculations will rely solely on contributions from the last 29 years, allowing the removal of two years from the assessment.
The newly proposed option of 29 years or 348 months with two years excluded will be phased in gradually over 12 years beginning in 2027. This approach is expected to benefit workers with irregular career paths.
Specifically, the draft notes that the extension to 29 years will proceed at a rate of four months per year from 2027 to 2038.
In the first year of this reform, 2027, the pension could be calculated using either the last 300 monthly contributions, which equals 25 years, or the last 304 monthly contributions, which equals 25.33 years, excluding two months. The option that yields the higher monthly pension is assumed to be applied automatically for the worker.
By 2031, pension calculations might use either the last 25 years of contributions or a 26.66 year period equal to 320 months, excluding 10 months. The validity window for the pension calculation would be 25.83 years or 25 years if that is more advantageous for the retiree.
By 2038, when the gradual extension reaches its limit, the pension is determined by either 324 monthly contributions over 27 years in the last 348 months or the traditional last 25 years of contributions, depending on which option best serves the worker. This remains true if any of the options outperform the current framework at retirement.
For pension calculations arising after December 31, 2026 and before December 31, 2040, the draft states that a 25 year period will be applied if it yields a more favorable outcome than the pensions in force at the time of retirement.
For pensions affected in the years 2041 and 2042 and 2043, the legal basis will include the contribution foundation of the last 306 months (25.5 years), 312 months (26 years) and 318 months (26.5 years) respectively, if those calculations prove more appropriate at retirement. The rule holds on retirement day, ensuring practical applicability for retirees.
From 2044 onward, the pension calculation period will settle at 29 years with the two weakest years excluded, eliminating the previous binary model of calculation periods.