2024-09-11 10:03:40
The Illustrious College of Lawyers of Madrid (ICAM) presented a regulatory proposal this Tuesday considered “historical”, to transform the future of thousands of alternative lawyers in Spain. This proposal is based on the exhaustive report prepared by the Professor of Labor Law and Social Securitymrs. María Emilia Casas, Over the past five months, he has offered a strong legal solution that will allow mutual lawyers to access the Special System for Self-Employed Workers (RETA) and thereby guarantee a dignified and fair retirement.
During the presentation of the report, the Dean of ICAM said, Ribbon Eugenio, He emphasized the importance of this moment for the Spanish legal profession: “This proposal has a clear and ambitious objective: to offer a voluntary portal to RETA that changes the reality of many of our mutuals. “This is a legal solution to a very complex problem that responds to an urgent need and, in addition, provides useful tools for negotiations with legislative and executive bodies.”
A complex and multifaceted conflict
The current situation, as detailed in the report, presents a multifaceted conflict that affects more than 26% of the mutuals. These lawyers contribute to a system of individual capitalization that does not guarantee enough pensions, which generates an inequality in benefits compared to those offered by the RETA.
In addition, there is no legal framework that allows the transfer of contributions between the Cooperative and the RETA, which limits mutual members’ options to improve their pensions.
Eugenio Ribón explained: “We are facing different legal and economic situations together. Many mutual pension members receive less than 500 euros per month, which does not correspond to a reasonable retirement, in violation of Article 50 of the Spanish Constitution (LAW 2500/1978), which ensures adequate economic coverage.”
Another challenge identified is the lack of information, which has created uncertainty about retirement planning for many mutual members.
Professor Casas’ report manages to provide a solution to this complex situation in which it is also requested that the proposal “ensures the sustainability of Social Security and at the same time protects the financial balance and solvency of the Mutual Association of Lawyers.” and the rights of mutual members”, as highlighted by the Dean of ICAM and included in the Casas report.
Voluntary gateway to RETA
To respond to all this, ICAM proposes a clear structured solution that includes the following key points:
1. Voluntary gateway to RETA: The proposal establishes a voluntary portal to RETA that will last six months, so that alternative mutual members can make an informed decision about their future. No chronological limits or economic criteria will be applied to access this option.
2. Translation of quotations: The capital contributed to the Mutual will be fully transferred to the General Treasury of Social Security, which will ensure transparency and legal certainty.
3. Quote conversion: Two conversion options have been proposed: a quantitative conversion of the stated capital or a conceptual conversion, in which the years contributed to the Co-operative are recognized as years contributed to the RETA. “From this institution, we protect that all colleagues who want to transfer to RETA must have a conversion that recognizes the same years of contributions in the Mutual Fund. This is necessary, since many mutuals lacked the health coverage provided by the public system for most of their professional occupations,” explained Eugenio Ribón.
4. Differential conditions: Three groups of mutual members will be created, with specific conditions for each based on their age and years of contributions. For those over 49 years of age who have not met the minimum 15 year contributions, more flexible conditions are being proposed to reach that period.
5. System of guarantees and transitional assistance: To facilitate the transition to RETA, an aid system is proposed that allows mutual members to gradually adapt, including the possibility of maintaining the minimum contribution base and applying reduced rates to those in more economic situations unfavorable.
6. Tolerant partners: The report also recommends consolidating the “Ayudas 65+” program, transforming it into a fully subjective right to guarantee a stable economic supplement for those mutual members who are already retired and do not receive adequate pensions.
Tax exemptions and work compatibility
Another significant measure in the proposal is the consideration of temporary tax exemptions for mutual members who decide to capitalize their private retirement benefits, especially in cases where longevity may generate additional economic needs.
In addition, it recommends making the compatibility rules between self-employment and retirement pension more flexible, allowing mutual members to continue working and contributing without losing accumulated benefits.
Call for institutional dialogue
The ICAM proposal emphasizes the importance of ongoing institutional dialogue between Social Security, Mutual Insurance and the legal profession to provide mutual members with the information they need to make informed decisions. “This is a complex process, and only through fluid collaboration between institutions can we ensure that mutual members are adequately supported,” said Ribón.
The Dean of ICAM, who highlighted the political consensus on this problem by reviewing the various initiatives presented by practically all the parties without exception, has said: “It is important to emphasize that there is a consensus there is a political issue regarding the need for adequate supply. protection in necessary cases for another mutual. The legislator must now translate this agreement into concrete actions. The call to the Government and the parliamentary groups is clear: it is time to act, it is time to legislate.”
Conclusion: A step towards social justice
ICAM considers this proposal to be a necessary response and an obligation of social justice towards mutual members. “Today we have an opportunity to fundamentally change the future of our colleagues, and from this institution, we will work hard so that no one is left behind,” said Ribón, who also asked the Government and the legislature to act and legislate passed accordingly.
The full report will be available for consultation on the ICAM website, together with an executive version and the independent economic report commissioned by the “AON” insurer.
The success of the call was remarkable, with almost a thousand members registered to follow the information session to present the report. This interest prompted the celebration of the event in an online format to allow the participation of members from all over the country. In addition, the recording of the session will be available for later consultation.
During his speech, the Dean of ICAM thanked the support of the members and associations that collaborated in the development of this project. Similarly, he praised the effort and commitment of Mrs. María Emilia Casas, emphasizing her fundamental contribution to seeking a fair and equitable solution for all mutuals. “Today, more than ever, the legal profession has a huge gratitude,” said the Dean, in recognition of the Professor’s work.
APPENDIX
Essential points arising from the constitutional and legal analysis supporting the ICAM proposal:
1. Extraordinary and Voluntary Character: The proposal for a gateway to RETA must be an extraordinary, time-limited and voluntary measure. This character is justified by the insufficient benefits that affect many mutual members, whose pensions do not reach the minimum levels of the public system, which violates Article 41 of the Spanish Constitution (LAW 2500/1978). In addition, mutual members’ freedom of economic choice is ensured (Article 33), allowing them to decide voluntarily whether they wish to remain in the Cooperative or join the RETA.
2. Equal Access to the Catwalk: The portal must be available to all mutual members, without chronological or economic restrictions, guaranteeing equality before the law (Article 14 EC (LAW 2500/1978)). Any limitation could generate unjustified discrimination among the parties, which would violate the principle of non-discrimination.
3. Provisional of the Measure: The threshold must be applied for a period of six months to allow mutual members to make an informed decision, in accordance with the right to effective judicial protection and transparency (Article 24 EC (LAW 2500/1978)). This period is necessary to provide adequate information about the rights and obligations of the mutual members, allowing for an informed decision.
4. Quotation Translation: The capital contributed to the Joint Society must be transferred in full to the General Social Security Fund (Article 41 EC (LAW 2500/1978)), guaranteeing that mutual members who choose the RETA gate will keep their acquired rights and will receive adequate financial protection in retirement.
5. Flexibility in Subscription Conditions: It is proposed that the conditions for contribution to RETA be differentiated according to the age and time of contribution of each mutual member. This measure complies with the principles of equity and proportionality (Article 9.3 EC (LAW 2500/1978)), which guarantees that those mutual members with fewer years to contribute will not be disproportionately harmed.
6. Assistance and Reduced Rates: The proposal also includes the application of reduced rates or even “zero fees” for those mutual members facing greater economic difficulties, in accordance with the principle of fiscal progression (Article 31 EC (LAW 2500/1978)) . This would prevent mutual members from being subject to excessive tax burdens when transferring to a RETA.
7. Institutional Collaboration: It is essential to guarantee an open dialogue between Social Security, Mutual Insurance, bar associations and institutional lawyers to provide full and transparent information to mutual members, thereby facilitating informed planning for their retirement (Article 7 (LAW 2500/1978) and 105.b). EC (LAW 2500/1978)).
8. Consolidation of the 65+ Assistance Program: The consolidation of the “Ayudas 65+” program is recommended as a full subjective right to complete the insufficient pensions of passive mutual members, in accordance with the right to a decent pension (Article 50 EC (LAW 2500/1978)). This program must offer stable financial coverage to those with insufficient benefits.
9. Tax Exemptions for Mutual Members: The proposal envisages the possibility of temporary tax exemptions or tax deductions for mutual members who capitalize their private retirement benefits, thereby ensuring that they are not penalized in cases of longevity related needs (Article 31 EC (LAW 2500/1978)).
10. Compatibility between Work and Pension: Finally, it is recommended that the compatibility rules between self-employment and pension be made more flexible, allowing mutual members to continue working while receiving a pension. This guarantees better economic security for retired mutual members, in accordance with Article 35 EC. (LAW 2500/1978)
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