The Justice Commission of Congress has approved the report on a bill allowing professionals like lawyers and architects to transfer savings from professional mutual funds to Social Security contributions. The aim is to ensure decent pensions, as some mutual funds pay less than 300 euros monthly. The reform, led by the Ministry of Inclusion, Social Security and Migration, moves toward final approval.
This week, the Justice Commission of Congress approved the report on the bill, which had been stalled for nearly a year. Political groups agreed that self-employed workers contributing to professional colleges can transfer their capital to Social Security to access the minimum retirement pension. The reform, led by Minister Elma Saiz, will be debated in committee before final approval in coming weeks.
The measure extends access to all alternative mutual members, expanding beyond the ministry's original proposal limited to those joining before 2005. It is not mandatory: self-employed can choose to stay with their mutual fund or convert savings to credited years. A conversion coefficient of 0.77 applies, so 10 years of contributions equal about seven and a half years in Social Security. For those over 55, each mutual year counts fully.
Access requires not being a Social Security pensioner, except for widowhood, and lacking minimum contribution periods. Capital transfer will be gradual, with details set by regulation. The Mutualidad de la Abogacía requests delaying transfers until retirement to avoid premature liquidation of long-term investments.
Professional mutual funds originated in the 1940s, like lawyers' in 1948, mandatory until 1995. Their pay-as-you-go model became unsustainable due to population aging, resulting in low pensions. The approved text includes a special agreement for recent RETA switchers, recognizing up to five years of contributions.
