The keys to the public pension fund prepared by the Government

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Within the proposals framed in the Toledo Pact to carry out the necessary reforms of the Spanish pension system, the Minister of Inclusion, Social Security and Migration announced the creation of a public pension fund, in the style of the famous Norwegian sovereign fund. This ambitious project is included in the General State Budgets , which are pending parliamentary approval, after overcoming the first obstacle in the Congress of Deputies. And although all the details of this instrument are not yet known, it is known that it will be publicly owned and managed by a private entity, and that it will serve to boost the savings of Spanish citizens. A British-style pension superfund The public pension fund will be a mix between the proven successful models of the EPSV of the Basque Country and the NEST of the United Kingdom .

It will be promoted by the Ministry of Social Security, and the employment funds of companies , especially SMEs, as well as self-employed workers and public administrations, will be assigned to it . It is expected that this model will be articulated through defined contribution employment plans shared between the company and Europe Cell Phone Number List the worker , and that it will be an alternative route to private pension plans, which are generally the type of vehicle preferred by workers to save for your retirement. This is how the new General State Budgets will affect your pocket In addition, it is intended to provide additional security for all the institutional support of this product. That is, unlike other investment instruments, the public pension fund will serve to guarantee the assets of its participants , which will be invested in the financial markets to obtain higher returns and thus increase the savings of the beneficiaries in the long term.

Of course, it is understood that, as is the case with other public pension funds, the investments will be associated with low-risk products in order not to compromise the workers' capital. The Government has given itself a period of 12 months to present a bill on public employment pension funds , in which the General State Administration is given the legal capacity to promote them. What we know so far Although not all the details regarding the articulation of this fund are yet known, some basic aspects of it are known. For example, defined contribution employment system pension plans that so establish in their specifications may be enrolled, as well as those that do not determine a specific pension fund.