Hearing Ignacio Fernandez Toxo, Secretary General of CCOO, the Permanent Commission for Monitoring and Evaluation of the Toledo Pact in Congress of Deputies.
access to social benefits for people in need, through financial or in-kind benefits, free or below market price, improve their quality of life of people, and can positively affect the stability of the economy to limit the negative effects of the cycles that periodically affect production. Their implementation in general in most European countries, including Spain, has been actively at current levels of social and economic cohesion. In our case this set of economic measures or in kind, articulated through the various administrations, central, regional or local, is an important determinant of our social model we need to strengthen further.
In this hearing, I start by moving to this Committee our conviction that preserving political and social consensus on the evolution of the pension system is the best recipe to keep your current strength and adopt, with the serenity and anticipation sufficient, necessary measures to ensure sustainability and improve their levels of social protection.
Paper political representatives, through the parliamentary groups represented in Parliament, to determine the main priorities and objectives shared core is essential to maintain the commitments of the 1995 Agreement.
So is the role of social partners with the Government, within the framework of tripartite social dialogue, agreed to decide the specific changes and adjustments in the system. Fulfill the role it assigns the English Constitution, and further argue, not exclusive, the system through social security contributions.
In this context, the CCOO commitment to the pension system is sufficiently established to date. We participated in all agreements signed since 1996. We are proud of it and we reiterate our commitment to contribute in the framework of social dialogue with the objective of maintaining the sustainability of the system, while strengthening its capacity as a basic tool of social protection.
The key objectives should be: to achieve maximum population coverage with a pension system that constitutes the main income and sufficient in a context of present and future financial sustainability, consistent with a significant improvement in quality of life of the population English and in particular the pensioners of the system.
This, we believe that actions must be kept permanent, global perspective, criteria for early and long-term forecast, avoiding short-sighted or short-term analysis and addressing basic social function and needs to which it is called upon to answer the pension system in its current configuration: pay more pension , taller and longer.
We can not ignore the difference in social protection effort that we still maintain in relation to our immediate surroundings. In 2006 we spent 6.6 percentage points less, measured as a percentage of GDP than the EU average (20.9% vs. 27.5%). In this regard, it should be noted that our Social Protection System not limited to pensions, but these are its backbone, the social protection policies to provide comprehensive care must also articulate the line measures to improve the protection of health, social services, etc. As for the pension system itself, our delay on Europe is also considerable, in 2006 we spent 8.8% of GDP compared to 12.1% in the EU-15, or 11.9% in the EU 27.
worth recalling the previous data in a time when we have a few days in which the pension system returns to be filed, loosely, as a cause for concern because of the economic crisis we suffer.
Our pension system is in good health, which does not preclude recognizing its financial stability, maintaining the current surplus for the longest period possible, the allocations to the Reserve Fund, are circumstances that need to maintain a sufficient number of contributors Social Security. The decrease in unemployment figures unacceptable suffering today, increasing the employment rate of women, the increasing contribution of the immigrant population, are fundamental tools for maintaining the current good health of the system, which is a clear consequence of the process which opened with the signing of the Pact of Toledo and the subsequent successive agreements reached within the framework Social Dialogue.
system deficit is not a problem in the short term. The data provided by Social Security point to maintain the surplus in 2009 in the pension system despite the reduction of rates and slower growth in the contribution base, partially offset by the increase in prices resulting from unemployment benefits by the State. Moreover, the sharp slowdown in inflation also means lower pension commitments revaluation.
We should not mix this positive imbalance of the pension system with the Social Security situation in terms of national accounts ie including social protection for unemployment in its entirety, also with the resources for active policies, which have now intensely the need to protect the growing number of unemployed workers.
Moreover, we note that the surpluses of the pension system did not start in 1999-2000. For three decades these have been absorbed by other expenditure items (universal health care until 1997, additions to minimum until now ...) Some studies estimate that if these surpluses have been above the Reserve Fund, it would exceed 34 % of GDP, rather than the important but clearly less 5.28% of our Reserve Fund.
Moreover, the delay in completing the process of separating the sources of funding and taking social security contributions under other headings, which reasonably should be financed by taxes (personal costs of Social Security, for example ), they still room for improvement in revenues over 7,000 million Euros, with 2008 data. Therefore, some preach impending deficit, either through ignorance or by conviction that this argument will help bring the pension system to lower coverage levels, it still handles more than reasonable to be avoided.
Security Social is one of our most powerful tools for anti-cyclical and we should strengthen our confidence in it.
The above statements are fully consistent with a calm assessment of the demographic tensions evident in the medium and long term. We are a country of the lead pack about our life expectancy and that has an undoubted effect on pensions to be paid for more years.
also makes provision demographic periods of heightened tension on the number of people with access to a pension at different times but with uneven impacts over time. Following the retirement of the generation born in the war and years immediate, subsequent generations born in times of sharp increase in birth rates and, therefore, require a rigorous policy to continue to monitor the financial health of the system. However, then will other less number of pensioners as a result of falling birth rates in recent decades. In the above, must be added the impact of the incorporation of immigrants that are helping to finance the system now and that logical consequence will benefit from further pension rights.
growth of economic activity is an essential variable to consider. Evolution GDP is the key and still dealing with different scenarios, the interplay of aging - in mid-century the number of pensioners will have increased substantially - and low birth rates, we do have the conviction that we must continue to act in medium and long term, to maintain financial balance.
However, even though the depth of the crisis and its long life time cause some short-term deficit, it would be timely. Delivery systems like ours are sustainable in any case. If the prices were not enough, the State guarantees the system. It is individual rights.
In this scenario, There is no scope for lowering social security contributions, the cost is about average for the countries of our environment and therefore does not diminish our competitiveness, because every point of contribution is 3,800 million euros in charges due. Therefore, a 3% cut means losing revenue 11,400 million, a 2% are 7,600 million and 5%, as it has come to ask at some point in uncontrolled euphoria just € 19,000 million.
Social Security, in terms of the pension system is in deficit, but if you take the wrong decisions can be made to enter into short term difficulties. The purpose of these requests for a reduction of contributions is to transfer income guarantees of future pensioners, through the Reserve Fund (€ 57.322 million at the end of 2008) to the income statements of companies. The level of unemployment that we suffer is not due to labor costs.
Increased rate and average income of employees are structural measures maintenance. Increasing the employment rate and productivity goes through a change in our production model. Do what is necessary for the production model of our country is based on competitive opportunities offered by high value jobs, instead of relying on comparative failed intensive activities labor and social cuts, is also a strategic commitment to the pension system.
A production model based on low labor costs affects the design of a pension system. If wage costs as a result of higher value-added labor input are higher possibilities of financing the system and improving its performance are also higher.
Specific measures that can be considered should include the improvement of coverage and benefits they need, and further deter fraud and the purchase of services. Moreover, each action taken in respect of revenue and expenses of the system must pass the screening test medium and long term.
be very aware of the conclusions of the Commission whose work followed with great interest. However, we would point our views on various sections:
Other issues:
"It's not a priority to address the delay mandatory retirement age. We were able to create innovative figures such as flexible retirement, which can still be developed to allow full access to voluntary early retirement from 61 years. This flexible retirement outputs different needs, combining the possibility of early retirement voluntarily lengthen the working life. We must continue to stimulate elongation while voluntary act on the financial balance of benefits for early retirement reduction factors which remain a margin for downward currently situated at 6 to 7.5% when its point of equilibrium would establish a 5 to 6.5%.
"Early retirement, in the terms can be generalized from the age of 61 without serious financial system and to include public employees now have no access to it.
-reducing minimum retirement age for persons working in arduous activities, toxic, unhealthy or dangerous, should be developed to sectors where warranted. In this sense, it is known the request of trade unions to address this issue for the staff of the construction work.
-study in detail the trends of new pension and labor market characteristics, changes in the activity rate and the average contribution base, are elements that determine the parametric formulas of access and benefit calculation .
"In these parametric reforms, if any, should better protect people working out of the market with 50 or more years. Despite having long contribution careers, their pensions are heavily penalized, as a result of weight in recent years in which are concentrated often lower their prices, resulting from the receipt of benefits and unemployment benefits. Anticipating
-source separation process and funded from general taxation personnel costs of Social Security, are appropriate measures to improve the quality and quantity of the financial structure of the system.
-Keeping the legal guarantee for increasing pensions in real CPI has a double interest, to maintain and strengthen the purchasing power of pensioners for their own welfare and at the time, to strengthen domestic demand for goods and services.
-Continue the process of matching the minimum wage (SMI) to stand at 60% of average net wage, an increase of contributions to them a financial boost to the system and a source of increase in average pensions.
-assess the impact to the system in terms of increased revenue and greater commitment of belonging to the same by people with above-average wages, a reasonable increase in maximum contribution base. The same must be related to the evolution of the maximum pension to receive the system.
-must unlock the process of convergence of schemes that despite repeated commitments to address it, still no effectively. Make special mention of the situation of the Special Agricultural Scheme for employees who have not yet begun to see the fulfillment of commitments under the Agreed Measures on Social Security signed in 2006.
"The improvement in birth rates, which allows us a more balanced population structure in the future, should be a basic objective. The development of social and economic policies in this area is still pending in Spain. Measures such as direct aid for dependent children, tax deductions related to the number of children, ... taking into account the higher level of costs of people with more of them, is still a matter that makes us look with envy at the major European countries with established and stable policies to finance the benefits that are caused by this plea.
"There are situations that must be analyzed to assess the suitability of its maintenance or correction. It is regulation around figures such as partial retirement or survivor benefits compatibility and SOVI. In both cases, economic benefits is higher than the benchmark and do not have access, in fact or law, all people entering retirement. Partial retirement has been addressed the last reform, changing their characteristics by unanimous agreement in the framework of social dialogue. Settings, designed to impose greater conditions of access to these services, call during transitional periods for implementation. Behind them, we analyze its impact and whether or not to take other actions.
-complementary pension schemes should remain encouraged. Its function is to complement the public system enough so that it serves to achieve a replacement rate of close to final salary and an instrument of long-term savings. Are these items related to the improvement of social protection policies that justify support these instruments. It is therefore necessary to advance the separation of employment systems, which guarantee the social function and the only capable generalization of these systems in the whole population, and the individual. Should be greater stability of employment systems, in response to mobility restrictions that characterize them, with more stable endpoints and appropriate to reduce the impact of the high volatility of financial markets. The benefits in the form of income must be encouraged to adequately fulfill the goal of these systems. Tax incentives should be reordered, given that the current dual structure of income tax, distinguishing el tratamiento de las rentas del trabajo y las del capital mobiliario, ha reducido el atractivo comparativo de estos instrumentos de previsión social complementaria.
30 de abril de 2009.
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