Pensioners: what the two possibilities of the moratorium will be like for those who do not have all the contributions

On Wednesday, the Chamber of Deputies should analyze the pension moratorium project, which it has sanction of the senators and what he contemplates two variants.

The first mode includes people with the reached retirement age (60 years for women, 65 for men), who do not have or will not have 30 years of contributions to start the pension process in the next 2 years.

The second variant is intended for women over 50 and under 60 years and men over 55 and under 65 years that they already know they will not reach to complete their contributions upon reaching retirement age.

In the first case they are allowed regularize the missing periods until December 2008 (including) through the application of a mode of installment payment what will they be discounted directly pension credit who get The number of installments can be up to 120under the conditions established by law.

The installments to be disbursed for the monthly installments to be regularized will be calculated according to the so-called “Pension Debt Payment Unit”, the value of which will be equal to 29% of the minimum taxable base of wages in force on the date of the request for the pension… Currently, 29% equals $4,896. For example, one or more installments may be paid per month, depending on the payment plan chosen.

But that tax to pay it will only be used to access the pension. It will not affect the credit, which will be calculated on the basis of the contributions actually paid without a moratorium.

In other words, those who retire with the moratorium will have a “discount” on retirement because they will only receive the years conferred and will also have a discount on the share of assets in the months or years that the moratorium lasts.

For instancefor an employed person with updated average gross earnings of $180,000 over the past 120 months (system average rateable earnings), the pension and allowances that would be deducted for qualifying for the moratorium would be as follows:

• With 10 years of contributions and 20 years to regularize for moratorium before December 2008, would withdraw with the minimum amount, $50,124 today (plus the $10,000 bonus through February 2023) AND $9,791 would be discounted in a 120-rate payment plan. Having cash would be $40,333almost similar to the $40,099 PUAM (Universal Benefit for the Elderly), as in both cases they receive the $10,000 bonus.

• With 15 years of effective contributions and another 15 years of moratorium, prior to December 2008, would retire with a starting salary of $63,430 (35.2% of gross salary) and $9,791 deducted in 90 installments or $7,344 in 120 installments. During those 10 years, the pension in hand would be $56,086, or 31.1% of salary.

How is the second option of the moratorium?

The second variant is intended for women over 50 and under 60 and men over 55 and under 65 who, having only a few years of contributions, They already know they won’t be able to complete 30 years when they reach retirement age.

This mechanism can be used by those demonstrate income that can justify the payment of the debt resulting from the “Contribution Waiver Unit” for periods prior to March 31, 2012. The value of that Waiver Unit (UCDP) is also 29% of the minimum tax base, or $4,896. This amount will be adjusted due to mobility.

Examples:

• A 55-year-old female, with 15 years of contributions and an average gross salary of $180,000. She has two children. You have 17 recognized years, you would contribute another 6 years up to the age of 60. And it would take 8 years to complete 30 years. In case the person chose to pay 2 UCDPs per month, they would have to pay $9,791 for 48 months before turning 60. This amount will be updated quarterly based on pension mobility. If you continue to work and maintain the same average gross salary, initial credit will be $76,930 (42.7%) at December 2022 values.

• Working male, age 58, 10 years of contributions, with an average gross salary of $180,000. You could complete 7 years of contributions until you turn 65. And it would take 13 years to reach 30 years of contributions, which can be canceled through the UCDP. In case the person chooses to pay 2 UCDP per month, it is expected to pay $9,791 over 78 months before turning 65. This amount will be updated quarterly based on pension mobility. If you continue to work and maintain the same average gross salary, your starting salary will be $68,830 (38.2%) as of December 2022.

NEITHER