The President of the Republic introduced the payment of half pensions to bank employees

The President of the Republic, Marcelo Rebelo de Sousa, promulgated this Friday a decree-law that provides pensioners in the banking sector with an exceptional allowance equivalent to half of the pension approved by the government on April 27.

“Noting the step taken to meet the legitimate expectations of bank employees, the President of the Republic promulgated a government decree that creates an exceptional allowance for pensioners in the banking sector, amending Decree-Law No. 57-C / 2022, of September 6, in the current version , which establishes exceptional family support measures to mitigate the effects of inflation,” reads a message published on the official website of the President of the Republic on the Internet.

On April 27, the government approved “a decree-law that creates an exceptional package for pensioners in the banking sector,” according to a communiqué from this meeting of the Council of Ministers.

“For reasons of fairness and fairness, a legal decision has been implemented that extends to pensioners in the banking sector the exceptional allowance provided to pensioners in October 2022 as part of family support measures to mitigate the effects of inflation,” the government added. statement.

This decree-law was approved approximately two months after the signing of a memorandum of understanding between the banking unions of the TSA, the Portuguese Association of Banks and the government.

Thus, pensioners from private bank pension funds will receive the equivalent of half a pension, and this measure covers more than 50,000 pensioners, UGT general secretary Mario Murao said in February after the signing of the memorandum.

In October last year, as part of a family support package to mitigate the effects of inflation, the government paid social security pensioners and pensioners of the Caixa Geral de Aposentação, on an exceptional basis, an additional payment equivalent to half the pension.

However, this measure did not apply to bank employees receiving old-age pensions paid by the pension funds of banks, which caused opposition from the trade unions.

The President of the Republic also promulgated this Friday the Decree of the Assembly of the Republic, which provides for the resumption of admission measures and the establishment of empowerment programs for children and youth at risk, amending the Child and Youth Protection Act. in danger.

This decree was approved in Parliament in the final general vote on April 14, in which all parties voted except for Chega, who abstained.

A memorandum between the government, the Portuguese Association of Banks (APB) and the UGT banking unions, signed February 24, stipulates that the money will be advanced by the banks’ pension funds and then paid back by the state.

At the time, Secretary of State for Taxation Nuno Santos Félix explained that the addition would be funded from the general state budget and estimated that the measure would cost the state around 40 million euros.

“The difference here is that the pension funds make the payment, because they are the ones who have a direct financial relationship with these pensioners,” the Secretary of State explained.

As in the previous year, an additional support of 50% of the pension is provided to pensioners with pensions below 12 social assistance indices (IAS), about 5,300 euros. The amount is taxed in the IRS separately from the monthly pension.

In the case of retirees who receive the €125 support awarded by the government also in October for workers with incomes up to €2,700 gross per month, that amount will be deducted from half of the pension, the secretary said.