The famous “trou de la Secu” turns into a chasm. While the accounts of social Security were in the process of reconnecting with the balance, the health crisis is going to increase by 2020 its deficit to more than 52 billion euros. And the forecast for the following two years are equally catastrophic, with an accumulated deficit of 92 billion euro at the end of 2022.
The French deficit plunges to record-record
Cades and CRDS
To finance these future losses, the government presents a draft law, discussed this Monday, June 15, in the Assembly, which means the contribution from the Fund amortisation of the social debt (Cades). This organization, funded by a levy of 0.5 % operated on all income (the contribution to reimbursement of social debt, CRDS) and a fraction of the CSG, should see the transfer of 136 billion euros of additional debts. Is the bill of the crisis with 31 billion euros of deficit years and $ 13 billion of debts of the hospitals.
In exchange for this mountain of debt news, the Cades should be able to count on an extension of the CRDS. Created in 1996, this tax, which is worth approximately 8 billion euros per year was originally planned to shut down as early as 2009. It has since ceased to be extended. This will still be the case, the new bill, to postpone its extinction from 2024 to 2033.
Creation of a branch dependency
This mechanism has, however, of the protests. Just like the unions, the left groups at the Meeting felt that all the debts related to the outbreak should be taken care of by the State, rather than by an extension of the CRDS. “This means that, for another decade, the social resources of the order of ten billion must be spent every year repayment of this debt and not be able to respond to social needs “, denounce the socialist deputies.
⇒ Dependence : the social Security could create a specific branch
To the left, as in the trade unions, many imagined it to be, in fact, recover from 2024 the manna of the CRDS to facilitate the balance of the pension system or to finance the support of the loss of autonomy. The bill, moreover, should endorse the creation of a fifth branch of social Security to cover the addiction. But with funding that is yet to be found.
Bad news from theInps on the front pensionsofficial : the update of the the coefficients of the transformation used to “translate” in the amount of the accumulated gained by the workers which will be placed in pensions from 1 January 2021. Values are still declining, according to a descending line that has been going now for over a decade. This is the part of the contributions accrued after 1 January 1996 (or January 1, 2012 for those that by December 31, 1995, have gained 18 years of contribution): the more the coefficient is high, and the greater will be the allowance of the pension.
The fifth revision of the coefficients has been published in the Journal 147/2020: to be disadvantaged will be those who will be retiring in the next 2 years compared to those who will leave the job to the end of 2020. With respect to the 2009, as emphasized by the specialized site Moneythe allowance per annum is down 12%. In front of a cutting inexorable, the only solution considering the novelties introduced by the reform Fornero is to remain in the world of work as long as possible to be able to apply the transformation coefficient is higher.
The Government took advantage of the royal decree on labor and fiscal measures to mitigate the effects of the crisis approved this Tuesday for something that, in theory, has nothing to do with Covid-19. Specifically, to initiate the transfer of the pension management of civil and military officials (Passive Class Regime) from the Ministry of Finance –where they have always been until now– to the new Ministry of Inclusion, Social Security and Migration.
Several additional provisions of this decree initiate this transfer, which will be carried out definitively when another royal decree on the structure of the ministry that José Luis Escrivá directs is approved. But, for the moment, it is approved that said pension management and other benefits State personnel will become dependent, first temporarily, on the General Directorate for Social Security Management and, later, definitively on the National Institute of Social Security (INSS).
But who is part of this Passive Class Regime? How do these officials contribute? How do they retire? Currently there 637,213 officials in Passive Classes, most of them from the General State Administration, the Courts and other constitutional institutions, the career military and State security forces or most of the teachers and other officials transferred to the communities.
However, it is a regime to extinguish since since January 1, 2011 no new workers enter. Even so, there is still the aforementioned group of pensioners and about 700,000 contributors whose contributions, like these pensions, are paid by the State (which is the employer) with taxes. The current budget for the payment of these pensions is around 15,500 million euros per year, which, when this transfer takes effect, must transfer the Treasury to Social Security, including management expenses.
The contribution and retirement system of this group is substantially different from that of the rest of employees. Thus, instead of paying contributions, the State makes its contribution based on a “regulating credit” that is equivalent to the regulatory base but which sets the Budget Law each year for five groups (A1, higher graduates; A2, graduates media, C1 administrative; C2 administrative assistants and E, rest). In this case, the employer (the State) contributes 18.3% compared to 23.6% of the employer of the General Social Security Regime, and the worker (official) puts 3.86% instead of 4.7 % of the employees of the General Regime.
The pension is also calculated by applying a percentage to the aforementioned “having regulator” that corresponds to the civil servant by categories and said percentage varies depending on the years of service and, in this case, it is quantified with the entire working life. Passive Class officials can retire at age 60 if they have 30 years of service, although a reduction coefficient is applied to the amount of the pension, but not for age, but for each year of service prior to age 35 . Thus, if they have worked 35 years when they turn 60, their pension is not reduced.
The secretary of Union Action of the FSC-CCOO, Raúl Olmos, declared yesterday that this union “hopes that the change from the Treasury to Social Security does not deteriorate the quality of the management of the pensions of the officials.” While from the union of CSIF officials yesterday they complained of not having been consulted and distrusted the use of a royal decree by Covid-19 to initiate this transfer.
On the other hand, in the aforementioned regulation, Social Security also decreed that the postponement of debts with Social Security requested by companies and the self-employed will be “incompatible” with the moratorium on contributions to alleviate the effects of the health crisis on the business fabric.
The Social Security has not yet published the ministerial order of the sectors that will be able to benefit from the moratorium, the rest will have to choose the deferrals at an interest rate of 0.5%, lower than the usual one.
Parents can claim tax on their children’s expenses.
Dusseldorf The state supports families with various financial aids. Child benefit is the classic. But with a few tricks, parents can persuade the tax authorities to make further grants or to share in their expenses. In order for the state money injections to be as high as possible, the prospective parents have to take care of them early.
The Ministry of Inclusion, Social Security and Migration will make a new payment of the extraordinary benefit for cessation of activity at the end of the month. The April 30th Those who have already received a first payment in the middle of the month will receive the proportional part and those who have not yet recognized the aid at that time will receive the amount equivalent to 47 days. More of a million self-employed they will receive the help.
This has been announced by the Ministry of Social Security, which directs José Luis Escrivá. A total of 919,173 self-employed workers received on Friday April 17 the special benefit for cessation of activity that aims to protect lack of income of the self-employed in the exceptional situation caused by the coronavirus and contribute to the survival of their business.
The amount of this aid is equivalent to 70% of the minimum base contribution in the Special Regime for Self-Employed Workers (RETA), which means a minimum of 661 euros per month. In addition, self-employed workers who receive it will be exempt from paying contributions. If upon being granted the benefit they have already paid the fees, the General Treasury of Social Security will reimburse them ex officio.
Any self-employed worker who is affected by the closing your business due to declaration of alarm status or whose turnover has dropped 75% In the month with respect to the monthly average of the previous semester, you can request this help. To request it, it is not necessary to have a minimum period of contributions, just be registered with Social Security and be up to date with the payment of social contributions.
In addition, it is compatible with any other Social Security benefit that the applicant has been receiving, such as orphanhood or widowhood, and it is compatible with the performance of the activity that was carried out. In order to facilitate the processing of this benefit to the self-employed who were not yet affiliated to any mutual, the Council of Ministers approved on Tuesday a Royal Decree-Law that allows them to do so to request it.
As of April 22, Social Security had received more than 1,154 million requests, which means that the percentage of self-employed workers who have requested the benefit is in the 35.5% of contributors. As of April 21, 1,039 million benefits had been resolved favorably and 38,605 had been denied, including 3,685 withdrawn, so the acceptance rate exceeds 90%. There is still 76,722 pending resolution, according to the ministry.
The SPD politician does not want to be the top candidate of his party.
Osnabruck Federal Minister of Labor Hubertus Heil does not want to run for the SPD for the chancellorship. Heil told the Neue Osnabrücker Zeitung (Wednesday) that he had no ambitions to apply for the office. At the same time, he praised the work of his party colleague Olaf Scholz: “Basically, Olaf Scholz does an excellent job. I experience that every day. ”The question currently is who the SPD will send to the Bundestag election next year, but“ not in the foreground, ”said Heil.
Salvation had been brought into play by former chancellor Gerhard Schröder among others as a possible candidate for chancellor for the SPD. Among other things, Schröder also mentioned Scholz as a possible candidate.
According to the “Insa opinion trend” for the “Bild” newspaper (Tuesday), the SPD is currently 15 percent. It would be in third place behind Union (38.5 percent) and Greens (16 percent). The Grand Coalition of Union and SPD as well as a black-green alliance would have a majority.
More: Federal Minister of Labor Hubertus Heil campaigns for an increase in short-time benefits.
Frankfurt Most people underestimate the risk of becoming disabled. On average, however, one in four will fail at least once for a longer period in the course of their professional life. If there is no earnings, most consumers will lack their main source of income.
Occupational disability insurance, or BU for short, cushions the financial consequences and is therefore considered one of the most important forms of insurance for private individuals – especially during the coronavirus pandemic. Experts expect more benefits, including mental illness and consequential damage from Covid 19 disease.
Potsdam-based specialist broker Frank Dietrich says: “The psychological stress in the corona crisis is increasing. I expect a larger wave of depression, which will be favored by social isolation. As a result, some patients will no longer be able to practice their profession, or only partially. ”
In general, the BU insurance pays a pension if, for health reasons, the insured person can no longer work permanently or only to a certain extent in their own profession. Some policies also apply if there is a long-term ban on work due to the risk of infection.
However, many occupational disability policies also reveal weaknesses in the crisis, especially when it comes to this so-called infection clause. If you are thinking about a new contract, you should consider a few points.
Mental illnesses are increasing. But even before the corona crisis, they were the most common cause of disability. They account for almost a third of insurance claims, as data from the Association of the German Insurance Industry (GDV) shows.
Around a fifth of the cases are related to back or joint problems and osteoarthritis. Accidents are only nine percent responsible for occupational disability.
Often, however, it is difficult to prove mental illnesses to the insurer, complains Dietrich. According to the GDV, only every fifth application for a BU pension is rejected. However, the most common reason for rejection is that the insured person does not reach the agreed level of disability, usually 50 percent.
In the case of unclear cases, it could be advantageous for the insured person not only to submit the existing medical documents, but also to have a medical report drawn up. According to the GDV, 63 percent of all reports lead to a positive benefit decision for the insured. When it comes to the psyche, Dietrich also advises its customers to seek inpatient treatment. Then the case is usually clear.
Disabled due to consequential damage
There could also be more insurance claims in the BU in the future because permanent damage may also remain after a coronavirus infection. According to experts, this could permanently damage the lungs and the heart. It is also being discussed that the virus could trigger meningitis, which could then lead to consequential damage.
According to Dietrich, good policies also pay a BU pension if the insured can still work with these consequential damages. It only has to be less than 50 percent of what he could work on days when he was still healthy.
The Federation of Insured Persons (BdV) also points out that insured persons who work in parallel to receiving a BU pension may also receive short-time work benefits in the current situation. This has no impact on the existing disability pension.
Dietrich considers it important that BU contracts also include a so-called incapacity clause (AU). Because while the occupational disability policy protects the insured if they can no longer practice their profession in the long term, the daily sickness insurance takes over if the customer is temporarily unable to work.
The problem that the daily subsistence insurer could now say that the customer is unable to work and that the occupational disability insurance states that he is unable to work – and thus neither of them wants to pay – can be eliminated by an AU clause, Dietrich explains. Then the customer receives a pension from his BU insurance for a certain period of time, even if no incapacity for work has been determined, but only incapacity to work.
Few policies with infection clause
In connection with the corona crisis, the keyword infection clause repeatedly comes up. If it is included in the contract, the insurer pays a BU pension if there is an official or judicial order stating that the work must not be carried out for at least six months due to the risk of infection.
At the BdV, it is said that there are currently no empirical values known that “permanent employment bans are being imposed because of Covid 19 infections.” Dietrich counters, however: “A few weeks ago we could not imagine the current situation. Who knows what will come despite the planned gradual easing. “
However, he had the experience that only about five percent of the BU contracts contain well-formulated infection clauses. Many policies do not contain such a clause. Some insurers limit benefits to certain professional groups.
Even those who have already been infected with the corona virus can still conclude a BU contract. “A well-cured Covid 19 disease does not in principle stand in the way of taking out occupational disability insurance,” says the industry association GDV.
Consequential damage could become a problem. The ability to insure is sinking because consumers have to state the illness when answering the health questions, according to Dietrich: “If you want to conclude a contract now, the health insurer should give you the listed treatment data and the medical record of the family doctor.” Only if the health questions at the If the application is answered correctly and completely, the consumer has a chance in the event of an insurance that the insurer also pays.
More: How insurance customers can save in the corona crisis
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Since the federal government approved an incentive package aimed at individuals and businesses in mid-March to alleviate the crisis caused by COVID-19, many Puerto Ricans check their bank accounts daily to find out if they already they deposited the $ 1,200 promised by the president Donald trump.
If you are one of those who have not yet received “the good news ”, there are several facts that you should know.
– Some citizens have already received the federal incentive in Puerto Rico. What does it respond to? Most are federal employees or citizens who file income tax returns with the federal government and have received it directly from the United States Internal Revenue Service.
– In Puerto Rico, the Department of the Treasury will be in charge of sending or depositing the money in the accounts or emails of the taxpayers bonafide. What does it mean? They will send to those who have a Social Security number, and those who have submitted income tax returns in 2018 or 2019.
– Social Security beneficiaries will receive the check directly from the Internal Revenue Service. Implying? Possibly, they get it sooner, just like federal employees or federal filers.
– The beneficiaries of the Food Assistance Program (PAN), They must wait for the Department of the Treasury to carry out the corresponding procedure. Like those who do not make contributions, but also do not participate in government charity programs.
– You don’t file returns, but you don’t benefit from any government program either? Well, you are among the group that must present an informative income statement before receiving the incentive.
How much will it touch you?
$ 1,200: Any individual who meets any of the requirements set forth, and whose income does not exceed $ 75,000 annually.
$ 2,400: All legally married couples, who file returns and whose joint income does not exceed $ 150,000 a year.
Dependents also count: For each dependent, $ 500 must be added, as long as they are under 18 years of age.
Do you earn more than $ 75,000 a year?
You also qualify for the incentive, only $ 5 will be subtracted for each additional $ 100 from income.
If you exceed $ 99,000, you won’t see federal relief coming.
Marriages who file their tax returns together, the $ 2,400 check is reduced when the salary exceeds $ 150,000. And if they reach $ 198,000 a year, they won’t have their relief, either.
When should you wait for the check?
The Department of the Treasury estimates that by the end of this April, it expects to be able to disburse the money.
“Jennifer Gonzalez has said that now we have to wait for the Trump Administration to decide whether to appeal the decision.” There is no need for that wait. Jennifer González is the co-chair of the Republican Hispanic Committee for Pro-Trump. If Boston’s decision is a good one, what the Commissioner has to do is demand that the President and his Attorney General not ask for a review of the case. That would guarantee benefits for thousands of Puerto Ricans, ”said Acevedo Vilá.
The Boston Court of Appeals upheld the decision that island residents should be entitled to Supplemental Social Security
Boston’s decision stipulates that citizens residing in Puerto Rico have the same rights to receive Supplemental Social Security as residents in all fifty states, Washington DC and the Mariana Islands.
The popular leader said that through congressional legislation any challenge or revision by the Trump Administration to this decision would be academic. “For years, Democrats in Congress have pushed legislation to extend SSI to Puerto Rico. Republicans have been opposed. Following Boston’s decision, I make an offer to Commissioner González; If she gets the support of the Republicans in Congress, I guarantee her the votes of the Democrats and we are able to end this controversy immediately. With duly passed legislation, any appeal to the Supreme Court by the Trump Administration would die, “he said.
Given Acevedo Vilá’s proposals, the current commissioner stated that “it is pathetic to read the hypocritical and strictly political expressions of the candidate of the Popular Party to Washington,” González said in written statements. It also reads:
“His record is more than clear, but I will remind him, he never did anything even when he was commissioner, much less as governor, to cause our people, who as a result of the colony that he supports and defends, to leave the poverty levels, “González said.
“What has been achieved with the decision in the Vaello case is fundamental in our fight for equality. It tells us all that the Acevedo Vilá and PPD neighborhood is demeaning,” he said.
According to González, Acevedo Vilá never sponsored projects to give him Supplemental Social Security. “Nor did he go to court to seek that remedy. On his turn at bat, he never did anything to fight or achieve these benefits. Now he only thinks to feel relevant,” he concluded.
“A catastrophe”, “a dramatic situation” or a “huge challenge”. This is how they define from the judicial career the situation that the courts will face when the collapse generated byCovid-19cessation in the ICU of the Spanish hospitals. A more than foreseeable social reality that the Government and thePower of attorney.Not surprisingly, the Ministry of Justice plans to approve a “specific action plan” in the area of social and contentious-administrative jurisdictional orders, as well as in Commercial Courts, to try to minimize the damages that the judicial decision decreed during the state of alarm can cause citizens.
In addition, it works against the clock to find solutions to speed up the avalanche of procedures that will be initiated due to the health emergency itself and the socio-economic impact of the measures adopted during the pandemic. This is the case of dismissals, ERE, ERTE, Social Security procedures, company bankruptcies, defaults, evictions, family procedures, appeals against sanctions imposed by confinement, etc.
In parallel, but also coordinated, theGeneral Council of the Judiciary(CGPJ) has launched the design of a shock plan for the courts in the face of the imminent reorganization of the remarks that must be carried out in the coming weeks, to which will be added that flood of new cases. Several of the 108 initial proposals by the body chaired by Carlos Lesmes have raised concerns within the judiciary. Measures are being considered, ranging from enabling the month of August to discouraging unsubstantiated litigation by ordering the payment of legal costs.
Once the declaration of the state of alarm has been withdrawn, the Government, at the proposal of the Ministry of Justice, will approve within a maximum period of 15 days the action plan to streamline judicial activity after the coronavirus crisis.
Speaking to EL MUNDO, the member of the Permanent Commission of the CGPJJuan Manuel FernndezHe assures that “the challenge is enormous. Perhaps it is the greatest organizational challenge that we have ever faced”. “It is essential that when the state of alarm rises, and the general suspension of procedural actions, there is a strategy designed so that those measures that have been approved can come into operation then,” says Fernndez. The member emphasizes that, although the Council has limited powers, it has chosen to propose an “ambitious plan” for action that requires the undertaking of legislative reforms, the approval of which will correspond to the Government. The counselor explains that it is a matter of “optimizing to the maximum the human and material resources” that are available today in the courts without this “greater efficiency” in organizational management in any way implying “a decrease in rights and guarantees of the citizen”.
Although the Ministry of Justice and the Council have different powers, the objective is to give a “consensual response” to the work overload that the pandemic is going to generate in the courts, indicate sources from the Executive. With that purpose, the criteria of the autonomous powers that have the transferred competences in matters of Justice and the State Attorney General will be used. The judicial associations will be heard and the opinion of other legal operators such as attorneys, lawyers or social graduates will also be sought. The end pursued by the ministerJuan Carlos Campois that “Justice is not an obstacle to recovery.”
346 percent workload
However, the reality is that in many judicial parties there is a bleak picture.Mara Jess del Barco, dean judge of Madrid, shows his concern about the situation that is going to be created in the Madrid courts where before the pandemic “an increase of a third of the workforce was already needed”. “A hecatomb is coming upon us,” says the togada. “The social jurisdiction in Madrid is already collapsed; in fact there are 24 Social Courts reinforced at the moment and it would be necessary to create 25 more courts”. “Nor is the commercial jurisdiction where the courts are currently at a 346 percent workload compared to the module set by the CGPJ itself freed. In the first instance, for example, all the courts are above 150 percent of workload and many hovering around 240 percent. This is already the tip, “warns the magistrate who considers it urgent to approve reinforcement measures, with more judges and officials from the Administration of Justice, to be able to face the avalanche of procedures that they are expected after the end of the alarm state.
In a similar vein, the president of the Social Chamber of the Superior Court of Justice of Castilla-La Mancha,Luisa Mara Gmez,who maintains that he does not exaggerate when he affirms that the situation that the Social Courts will face in our country “is going to be dramatic”. “The social jurisdiction has been the hardest hit by the crisis of recent years and the magistrates have long been making a major overstrain. The first wave of issues when the state of alarm is lifted is going to have a brutal impact on the courts of the Social “, he explains. In the opinion of Gmez, “temporary support judges or reinforcement judges would be needed to celebrate as soon as possible all those acts suspended during the period of alarm. However, at the moment many Social Courts are pointing at one year.”
Likewise, the magistrate of the Contentious-Administrative Chamber of the Superior Court of Justice of Extremadura,Raymond Prado, explains that the contentious scope is “very wide”, being that the files for the crisis generated by Covid-19 are likely to reach these courts “more in the medium term than in the short term.” Prado does not doubt that there will be, for example, “many claims for patrimonial responsibility to the State” of relatives who come to the jurisdiction of the contentious for possible negligence in health actions or against the actions of public residences for the elderly. Another magistrate of the Contentious-Administrative Court of the Superior Court of Justice of Catalonia, who prefers to remain anonymous, stresses that it is foreseeable that there will be a “deferred effect” in this jurisdiction of the flood of matters arising from the health crisis. The reason is that, for example, fines that are being imposed by law enforcement officers on those who skip confinement have to be appealed first by the administrative route before being brought to court.
For his part, the magistrateManuel Almenar, president of theProfessional Association of the Magistracy, majority in the judicial career, values as positive the initiative to implement a crash plan with a hundred measures “since we must be prepared for what is coming upon us.” In his opinion, it is necessary to work in three lines: organizational with reinforcing measures in those jurisdictional bodies that are going to receive more matters after the pandemic; in addition, carry out the referred procedural streamlining measures; and, to study others for existing mass litigation cases -such as soil clauses- and those that are going to occur due to the exceptional nature of the current situation that the country is going through.
In the opinion ofIgnacio Gonzlez Vega, spokesperson for the associationJudges and Judges for Democracy, since this shock plan will not be endowed “with almost no budget”, the action should focus on “carrying out procedural reforms that do not diminish the rights of citizens in the social or commercial jurisdictions that is where they foresee an avalanche of affairs. ” Gonzlez Vega, magistrate of the Madrid Provincial Court, is committed to “streamlining procedural deadlines, seeking alternatives such as mediation and conciliation, extending the effects of lawsuits that are going to be massive, issuing in voce sentences in certain procedures to make workloads more flexible of the courts, reduce unnecessary personal procedural steps or even enable the month of August. “
However, upon learning of the CGPJ’s battery of proposals, the Association of Judges and Judges for Democracy issued a statement indicating “its radical opposition to the fact that the response to this crisis involves a reduction of the rights and guarantees of the defendants.” For its part, the associationIndependent Judicial ForumHe denounced that the Council’s plan, together with procedural streamlining measures, includes measures of a structural nature and a vocation for permanence. “
Finally,Victoria Ortega, president of theGeneral Council of the Spanish LawyerIn a conversation with this newspaper, the need to adopt speeding-up measures in the following months, including “legal, procedural, organizational, and personnel rules”, is included. Ortega explains that “very specific proposals” must be addressed since “the more accurate the diagnosis, the faster we will recover a certain normality” in judicial activity. Among the measures contemplated by the Lawyer is that the courts recover activity from this Monday to give continuity to the pending issues. That is, without admitting the presentation of new causes.