SSA: Government Implementation of Pension Increase, Reviews Legislation amid Inflation

The government has withdrawn from implementing a pension modernization formula that would give increases of more than 8% to the vast majority of retirees, the Social Security Administration announced recently. 

Implementation of Pension Increase

The Social Security Administration said that to fulfill the government’s commitments, it will review legislation that states that most pensions should have a 4.43 percent increase in January, as reported by BRYTFMONLINE

It also stated that the January rise included the half-pension payment made in October, equaling 3.57% of the yearly annuity payment. This guarantees that retirees will have more money by the end of the following year.

The legislation considers the average homeless inflation recorded in November and the evolution of GDP over the previous two years, which are larger than anticipated when calculations are performed in September.

The most recent GDP estimates as of November 30 show an average growth of 4.78 percent, higher than the 4.5 percent rate taken into consideration by the government.

More increase in IAS

The government did not remove the law mandating that the index of social assistance (IAS), upon which a cascade of social support depends, be computed in the same manner as the first level, despite its announcement that it would increase by 8% the following year, reports said. 

The business community had already received assurances from the Ministry of Labor that it would amend the IAS following the law. Therefore, instead of the announced 8% growth, this indicator may rise by roughly 8.4% to 481.09 euros in 2023.

For instance, the minimum and maximum unemployment benefits, the number of social unemployment benefits, and the rates of updating different uses, including pensions, all affect international accounting standards.