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Old 09-05-2013, 08:26 AM
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Mary Pat Campbell
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
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(Reuters) - Spain is pushing for state pension reforms that would link payments to life expectancy and to economic cycles, without raising the retirement age, employment minister Fatima Banez said on Monday.

The proposals, which the government presented to unions on Monday, would include de-linking pensions from inflation as of next year, tying them instead to a more complex formula that also takes into account the system's revenues.

Spain is under pressure from Brussels to shake up its pensions system by the end of 2013, to help it fix imbalances in its economy and as soaring unemployment puts an unprecedented strain on social security funds.

The number of people contributing to state pensions has fallen to its lowest level in a decade after nearly 6 million Spaniards lost their jobs and stopped paying into the system, which supports 9 million pensioners.

That forced the government, which is still struggling with a recession and budget cuts as it tries to reduce its deficit, to twice tap its social security reserve fund in July to help with extra summer retirement payments.


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