PCP questions Social Security Secretary about correct IRS withholding from pensions

On Tuesday, the PKP asked the Minister of Labour, Solidarity and Social Security whether it was correct for the IRS to withhold May pensions, which led to a decrease in their value in net terms, considering that this is an unacceptable situation.

In a question addressed to Maria do Rosario Palma Ramalho through Parliament, the PCP states that thanks to the statement of the National Confederation of Pensioners, Pensioners and Senior Citizens (MURPI) and the contacts it has established, it has become known that there are pensioners who, when they access the Social Security Direct portal , they see that in May “they will receive a smaller amount compared to the previous two months.”

“According to what we have learned, the gross value of the pension is the same and the withholding percentage for IRS purposes remains the same, but the amount subject to withholding is greater than the appropriate stated rate. From this calculation, therefore, the net amount to be received is lower compared to previous months,” reads the question signed by communist deputies Paula Santos and Alfredo Maia.

For PKP, it is “unacceptable that, given that the vast majority of pensions are very low and after IRS rate cuts were announced, retirees and retirees are faced with this situation of receiving less in pensions than they received.”

The party therefore asks the Minister of Labour, Solidarity and Social Security “how does the government know about this situation” and also wonders “what is the reason for the reduction in the net value of pensions, given that the gross value of the pension and the IRS rate remain.”

“What measures will the government take to fully respond to this situation and also quickly correct the calculations being carried out so that pensioners and pensioners maintain the net amount of their pension?” they also ask.

This Monday the government expressed “surprise” at the agreement to withhold tax on pensions for April and May, saying it was the result of the “solely political orientation” of the previous socialist executive.

In turn, the Social Security Institute clarified that adjustments were made to the IRS withholdings for April and May pensions to adjust the withholdings made in January based on the “preliminary” table for 328 thousand pensioners.

This clarification comes after the Jornal de Negócios reported the case of pensioners who faced a decrease in the net value of a pension paid in May, without a receipt explaining this fact – since the gross value of the pension was maintained, as well as the tax withholding rate, but not the discount amount.