FROM THE SUSTAINABILITY FACTOR TO THE INTERGENERATIONAL EQUITY MECHANISM IN THE SPANISH PENSION SYSTEM
FROM THE SUSTAINABILITY FACTOR TO THE INTERGENERATIONAL EQUITY MECHANISM IN THE SPANISH PENSION SYSTEM

Summary/Abstract: The debate on the sustainability of the pension system remains a thorny issue for the Member States of the European Union. Spain is not exempt from the debate and in the national framework, as a result of the coronavirus pandemic, a new paradigm has been opened that aims to give a more accurate solution to the challenges faced by the Social Security system and, in particular, the pension system. Challenges such as demographics, precarious employment, low birth rates, active ageing and increasing life expectancy oblige States to make decisions in this area. Hence, a new set of reforms have been proposed during the pandemic that are also being addressed within the framework of political and social dialogue. One of the novelties addressed by the reform process is the repeal of the sustainability factor and its replacement by the so-called intergenerational equity mechanism. The object of this article is the analysis of the repealed sustainability factor and the new mechanism of intergenerational equity.

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