A renovated renovated to return 135.007.06 euros to Spanish social security after accumulating the old age pension with paid functions as a majority administrator and partner of a company. The decision was confirmed by the Madrid Superior Court, which considered the situation incompatible with the legislation in force.
According to Work, Spanish digital communication, specializing in employment topics and labor legislation, the case began in 2015, when the man requested the reform pension, approved with a regulatory base of 2,135.75 euros and a rate of 80.87%. Since then, he has received about 1,727 euros monthly.
When the pension is incompatible with income
Despite being renovated, the beneficiary remained registered in the special regime of independent workers (straight) due to the position of administrator. According to the same publication, this condition generates incompatibility with the old age pension, except if the beneficiary requires the call Active retirementprovided for in Real Decree-Law 5/2013.
This modality allows to reconcile pension and work, but only under very specific conditions and with formal request. The court confirmed that the retired has never requested this exception, which transformed all amounts received during the period into improper charges.
Arguments without effect
During the process, the retired claim that the company’s income was reduced and that the children would be managing society. However, according to the work of work, the judges understood that these arguments did not rule out incompatibility. The mere fact that he maintains a majority administrator and partner was already the illegal accumulation of the pension with working income.
The Court also dismissed the application of the rule provided for in Article 213 (4) of the General Law of Social Security, which allows us to compatible pension with low -income marginal activities up to the limit of the interprofessional minimum wage. The decision clarified that this exception applies to small independent work, but never to corporate managers.
Final value to return
Based on this interpretation, the Court determined that the reformed must return 135 thousand euros to social security, corresponding to the amounts received improperly. Still, part of the amount was excluded by prescription, limiting the return to periods still covered by law.
According to the work news, the case serves as a warning to other pensioners who accumulate income with business management positions, showing that Spanish law only admits these situations in the special active jubilación regime, through very restrictive rules.
And in Portugal?
In the Portuguese case, the law also establishes clear limits. According to Decree-Law No. 187/2007, the old age pension can be accumulated with dependent or independent work income, but there are exceptions.
It is not allowed to reconcile the pension if it is resulting from the convening of an absolute disability pension or if it has been attributed to the anticipated reform regime for flexibility of age. In these scenarios, the exercise of paid activity is incompatible and may lead to the suspension or return of amounts unduly paid.
Also, even when accumulation is legally possible, all income must be declared in the IRS and may imply an increased fiscal load.
In case the pensioner chooses to continue to discount social security, he may benefit from a small increase in the amount of the pension, calculated under the terms of article 28 of the same diploma.
Portuguese law is thus clear: it is only allowed to work after reform under certain conditions, and ignoring these rules can have serious financial consequences.
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