Regulatory Decree No. 5/2018
- Issuer: Presidency of the Council of Ministers
- Diploma Type: Regulatory Decree
- Number: 5/2018
- Pages: 2630 - 2632
Summary in plain english
This regulatory decree defines how the special upgrade of social security pensions and the convergent scheme from Caixa Geral de Aposentações (the public employees' pension system) set in the State Budget for 2018 will be made.
The convergent scheme is the social protection scheme for workers who registered with Caixa Geral de Aposentações by 31 December 2005. It is a scheme similar to social security.
A social protection scheme is a system workers contribute to while working and receive assistance when they cannot work for health reasons or because they are too old, for example.What will change? Pensions of 643.35 euros or less will increase
The special upgrade will benefit pensioners who receive a monthly total pension of less than 643.35 euros. These pensions can be for:
- old age
To calculate the monthly amount, the amounts of all pensions that a person is entitled to will be added up in the month of July, including any special upgrades that may have occurred.
The following will not be included in this calculation:
- pensions for permanent work disability or death resulting from occupational disease
- pensions resulting from compensations
- pensions paid by Caixa Geral de Aposentações without pensioner contributions to this system
- pensions of beneficiaries of the Sickness Fund of the Bank of Angola (but the part of the pension corresponding to the contributions of these workers to the general social security scheme or the extra amount they receive for supporting their spouse will be taken into account)
- pensions of beneficiaries covered by the special social security rules for railway workers
- pensions of workers from the STCP — Serviço de Transportes Coletivos do Porto
- amounts received for supporting the person to whom they are married
- amounts received for being in a situation of dependency and needing the help of another person to meet the basic needs of daily life
- pensions that are not paid by Social Security or Caixa Geral de Aposentações.
Starting in August, people who did not receive any pension increase between 2011 and 2015 will receive another 10 euros per month.
Starting in August, people who have had at least one increased pension between 2011 and 2015 will receive another 6 euros per month.
If a person's pension has already been increased in January 2018, the amount of that increase will be discounted. In this case, the pension will be increased by 6 or 10 euros but the value of the January upgrade will be subtracted.The increase will be paid by the entity that usually pays the pension
The Social Security and Caixa Geral de Aposentações will increase the pensions they usually pay.
When the pension that a person receives comes from discounts made to Social Security and Caixa Geral de Aposentações (a combined pension), the increase will be paid by the entity that already pays the pension.
In cases when each of these entities pays a part of the pension, each will be responsible for the increase corresponding to the part of the pension they usually pay.What are its benefits?
This regulatory decree is intended to:
- settle the compensation for the loss of purchasing power caused by the pension freeze between 2011 and 2015
- increase the income of pensioners with lower pensions, meaning those who receive a total pension of 631.98 euros or less per month.
This regulatory decree comes into effect the day after being published and the changes it introduces take place on 1 August 2018.
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