The General Social Security Law establishes in its article 163.1 that, as a general rule, the pensions of the General Regime are incompatible with each other when they coincide with the same beneficiary. This means that if a retiree has the right to receive a retirement pension and, at the same time, another benefit, such as a permanent disability, he or she will not be able to receive both at the same time, unless a law expressly provides otherwise. Although there are exceptions, in these cases the pensioner must choose between one of the two benefits, which raises doubts about which of them will be suspended and why.
Now, many are wondering why they should choose between one of the two, if they have generated the necessary quotes. The answer is that the Social Security system is designed to protect citizens in the event of a single contingency or situation of primary need. In other words, a retiree cannot collect the retirement pension (for having ceased her working life) and at the same time collect for being “permanently disabled”, for a job that she no longer does (being “retired”).
Thus, this rule serves to avoid what is known as double protection, without leaving aside the fact that it also serves to guarantee the sustainability of the pension system.
One of the two pensions will be suspended
The incompatibility between contributory pensions entails the suspension of one of them, that is, we will have to stop collecting one of them. To determine which remains active and which remains suspended, Social Security is clear and will give the one that is of the greatest amount and beneficial and will proceed to suspend the corresponding pension because it is of the lowest amount.
For example, if a citizen receives a retirement pension of 1,400 euros per month and is then recognized as having a permanent disability of 1,700 euros, Social Security will suspend the retirement pension (because it is the lowest amount) and will begin to pay the permanent disability pension.
| Situation | Retirement Pension | Permanent Disability | SS default decision |
|---|---|---|---|
| Situation 1 | €1,800 | €1,500 | Pay retirement benefits, suspend disability benefits. |
| Situation 2 | €1,400 | €1,700 | Pay disability, suspend retirement. |
Now, although Social Security will give the one that is most beneficial, you must know that the same article of Social Security, 163, says that if the pensioner so wishes, he or she can request that it be revoked and ask to continue collecting the suspended pension. In short, Social Security provides the most beneficial, but if the interested party wants to continue collecting the other, they can do so.
This option, which may not seem logical, is beneficial when a person is collecting two permanent disability pensions at the same time (under the same Regime) and opts for the smaller amount, because in the long term the contributions may be better for retirement.
Is it possible to collect two pensions at the same time?
As a general rule, no, since pensions are incompatible with each other. Now, there are exceptions, since the rule itself states that this will be the case “unless expressly provided otherwise, legally or by regulation.” This means that those who have contributed to different Social Security regimes (for example, in the General Regime and the Self-Employed Regime) and have generated the right to both separately will be able to collect two pensions at the same time, as long as they meet the specific overlapping contribution requirements required by law.
Another notable exception has to do with pensions from the extinct Mandatory Old-Age and Disability Insurance (SOVI). Those who are entitled to these SOVI benefits can make them compatible with widow’s pensions. However, there is a legal limit: when both are present, the sum of the two may not exceed double the amount of the minimum widow’s pension for beneficiaries aged sixty-five or older. If this limit is exceeded, Social Security will reduce the amount of the SOVI pension until it adjusts to the legal limit.