The General Social Security Law is clear and those retirees who get to work without communicating are exposed to the retirement pension being suspended in addition to demanding that they return everything charged improperly. While the regulations do not prohibit reincorporate to working life, it forces to do so through the allowed modalities, such as active retirement, flexible or self -employment with limited income. These exceptions are regulated in articles 213 and 214, which must be previously met and requested.
This is so, since as a general rule, the retirement tax pension is incompatible with work, either on behalf of others or own. This means that, if a pensioner decides to return to working life without accepting one of the legally planned modalities, Social Security will suspend the payment of his pension. Now, to say that the law contemplates exceptions that allow the pension to be compatible with a work activity. The two formulas are what we have said that are flexible retirement and active retirement, which each has its own requirements, and conditions.
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Flexible retirement is designed for those who, being pensioners, decide to return to work. This modality allows the pension collection to be compatible with a part -time contract. The amount of the pension is reduced in reverse proportion to the workday that is carried out. For example, if a retiree begins to work with a part -time contract (50%), his pension will be reduced in that same percentage. It is a route designed for a gradual and controlled work reinstatement.
On the other hand, active retirement allows the pension to be compatible with a part -time and full -time job, either on behalf of an autonomous. To access it, it is necessary to have reached the legal retirement age and be entitled to 100% of the regulatory base. It is important to correct that only 50% of the pension are charged; The law establishes that a percentage of the pension that varies depending on the years that access to retirement has been delayed, starting from 45% and being able to reach 100% of the amount.
What happens if I work and do not communicate it to Social Security
In the event that a retiree gets to work either on his own or foreign and does not communicate it to Social Security, he faces two consequences. On the one hand, Social Security will immediately suspend the payment of the pension and, on the other hand, a procedure will begin to claim the return of all amounts that have been unduly charged from the beginning of the work activity. This is so, because the law establishes a general incompatibility between the collection of the pension and the realization of an activity that forces to be registered in the system.
This is stated in article 213 of the General Law of Social Security (it can be consulted in this BOE) in which it explains that “the enjoyment of the retirement pension will be incompatible with the pensioner’s work”, except in the cases that the law itself determines. The law considers that the pension is an economic benefit that replaces work income when a person ceases their activity. Therefore, the realization of a work not compatible with the pension implies the cessation of the right to collection, which results in the suspension of it as long as such activity lasts.
To understand it, this does not want to say that a retiree cannot return to work, but must be done following the guidelines established by Social Security, that is, through active retirement, partial retirement or compatibility for self -employed with reduced income.
A real example of incompatibility
This situation occurs and a real case is what had to resolve the Supreme Court serves as a clear example. A pensioner was forced to return 41,161.52 euros to Social Security that had gained improperly. After retiring, and despite having been warned by the Administration, he continued as the holder and administrator of a company and remained discharged in the Special Regime of Autonomous Workers (RETA). His activity was demonstrated when he even sanctioned a worker, confirming that he served as an entrepreneur.
Social Security, verifying that their income exceeded the annual interprofessional minimum salary (SMI) – the legal limit for compatibility with self -employment – suspended his pension and claimed the return of the perceived. The pensioner appealed the decision, but both the Social Court and the Superior Court of Justice of the Basque Country failed against him. Finally, the Supreme Court inadmitted its last resort, declaring the final sentence and confirming its obligation to reintegrate the full amount to Social Security.