La ministra Elma Saiz entrega el informe anual del Fondo de Reserva de 2023 a la presidenta del Congreso, Francina Armengol
03/07/2024
Social protection
Minister Elma Saiz delivers the 2023 Reserve Fund’s annual report to Congressional President Francina Armengol
Topics:
- The Reserve Fund, also known as “Pension Hucha” reached almost 67 billion euros in 2011, but fell to 2,138 in 9 years
- The Fund is expected to end in 2024 with 9.2 billion euros and 25 billion euros at the end of the legislature
- In just four years its value is multiplied by four thanks to the record employment data and the Intergenerational Equity Mechanism, launched since January 2023
- Elma Saiz: “The sustainability of our system is guaranteed. The measures adopted by this government and the pension reform give certainty to the more than 10 million current and future pensioners.”
Share on social networks:
The Minister of Inclusion, Social Security and Migration has delivered for the first time in the legislature the Reserve Fund Report for 2023 to the president of the Congress of Deputies, Francina Armengol. The value of the Fund as of December 31, 2023 was 5,578 million euros, after adding 3,438 million euros that year, thanks in large part to the Intergenerational Equity Mechanism (MEI) that has been in operation since January 2023.
So far in 2024, the Fund has already added to that amount endowments worth 1,444 million euros, up to the current 7,022 million euros, as of 31 May. 1,373 come from the MEI. Thanks to the evolution of employment and income from social contributions from the Intergenerational Equity Mechanism (MEI), the Social Security Reserve Fund is expected to end the year
2024 with 9.2 billion euros.
This is the highest level of the so-called “pension hucha” since November 2018.
The Reserve Fund reached almost 67 billion euros in 2011, but fell to 2,138 in 2020. At the end of 2024, its value is expected to multiply by four, to 9.2 billion, thanks to the good progress of employment and the activation of the Intergenerational Equity Mechanism.
The Intergenerational Equity Mechanism, which was born as a result of social dialogue, has been operational since January 2023 and aims to contribute to long-term sustainability. It is fed by the contribution of 0.7 percentage points of the contribution for common contingencies, distributed between the company and the worker, in the same proportion as the social contributions (4.7%, the workers and 23.6%, the company). The MEI will grow by a tenth each year to reach 1.2 percentage points by 2029 with the aim of strengthening the system’s revenue.
