A Spanish pensioner saw the General Social Security Treasury (TGSS) forced to return 5,883.75 euros that she had already paid into an installment plan. Social Security had demanded the return of 39,255.19 euros for alleged undue receipts. According to the Spanish digital newspaper NoticiasTrabajo, the TGSS will still have to add 228.89 euros in interest.
According to the Spanish digital newspaper, Noticias Trabajo, identified as Santiaga, the beneficiary was receiving a retirement pension when, in May 2022, she was notified that she had unduly received the benefit for four years (2017 to 2021) and that she would have to return 39,255.19 euros.
The allegation was based on the fact that Santiaga had been discharged from a Social Security scheme, a situation that could make receiving the pension incompatible with work, in accordance with article 213 of the Spanish General Social Security Law.
Phased payment and first court decision
Despite disagreeing, Santiaga agreed to pay the debt in stages: 60 months, with a monthly installment of 653.75 euros, having paid nine monthly installments, totaling 5,883.75 euros.
A court later annulled the infraction and the obligation to return any amount, which led Social Security to rectify its position.
With the debt cancelled, the pensioner asked for the amount already paid to be returned, but the TGSS did not immediately reimburse her, forcing her to go to court again.
High Court ruling and interest
The case reached the Superior Court of Justice of Castilla-La Mancha, where Social Security argued that the INSS could not be the one to return the money, since it is the TGSS that manages the payments.
The court gave relevance to article 26 of the Spanish General Social Security Law, which guarantees the right to return undue income and provides for the application of default interest from the date of payment until refund.
According to , the court therefore decided that TGSS should return 5,883.75 euros, plus 228.89 euros in interest. Because the payment was made before the final sentence, the concept of “lack of purpose” was applied, considering that, with the cancellation of the original debt, the pensioner should be compensated, that is, in the same economic situation as she would have been if the administrative error had not occurred.
And in Portugal?
In Portugal, there is also a procedure to request the refund of undue payments to Social Security. The official portal indicates that the request can be made, as a general rule, up to five years after the date of payment.
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