28/01/2011 - OECD Secretary-General Angel Gurría has welcomed the pension reform plan announced by the Spanish government.
“The reform is an important step toward improving long-term sustainability of public spending,” said Mr Gurría. “It makes substantial progress in strengthening the link between contributions and benefit entitlements, which will reinforce work incentives and reduce the black economy. The fact that it was agreed with the trade unions and employers bodes well for its full acceptance and implementation.”
The reforms include increasing the number of years of contributions and the minimum age to qualify for a full pension as well as lengthening the earnings record taken into account in determining pension benefits.
Such measures improve long run sustainability and incentives to work. “We also welcome the provisions that provide support to working mothers and fathers. This is an integral approach that considers both financial sustainability and social responsibility” said Mr Gurría.
More information about Spain is available on : www.oecd.org/spain