A crossword puzzle for strong solvers is evolving into the issue of retroactive payments to pensioners, with no one, not even the lawyers following its development, being able to predict the final solution that will be given.
Correspondingly, pensioners are watching in bewilderment the series of successive - and sometimes conflicting - decisions, which on the same issue, the same cut, declare the decision unconstitutional for the private sector and constitutional for the public sector.
However, the final picture on beneficiaries and amounts will become clear with the issuance of the two decisions, one by the Council of State for the private sector and one by the plenary session of the Court of Auditors for public sector pensioners.
However, the gifts and holiday allowance of public sector pensioners are now considered to have been forfeited for public sector pensioners, as the latest decision of the Plenary Session of the Court of Auditors ruled that the 2013 cut is constitutional and, therefore, they are not entitled to retroactive payments.
The same decision ruled that the imposition of the Pensioners' Solidarity Contribution is constitutional, but for the period from 1 January 2019 onwards. The previous period, i.e. from the beginning of 2017 to the end of 2018, this withholding is considered unconstitutional and therefore refunds arise for this period.
The Pensioners' Solidarity Contribution is levied on all main state pensions from 1,400 euros and above (3-14%) and on all supplementary pensions above 300 euros gross (3-10%).
The next decisions
Now, pensioners are waiting for the outcome of the pilot trials of the Council of State (January 2021) and the Court of Auditors (September 2021).
However, it is clear that the Court of Auditors, with its new decision, will answer the remaining «legal questions» surrounding pension cuts, apart from the gifts, the abolition of which for public sector pensioners was definitively ruled constitutional.
The other decision of the Plenary Session of the Council of State concerns pensioners of the private sector and will decide the reimbursement of the reductions of supplementary pensions and gifts (Christmas and Easter, as well as holiday allowance) for the period from 11.06.2015 to 12.05.2016.
Now, whether these decisions will unravel the tangle of retroactive payments or become more entangled, we will know when they are issued.
