Explainer of the week. Some CGA pensioners will have adjusted retirement

Aafter admitting the existence of a error in processing the values of some pensions, the General Retirement Box (CGA) he is already notifying pensioners of the new value of his retirement. On average they will receive less 93 euros already next month.

In the new documents, CGA is now informing pensioners that the retirement conditions “have changed” and presents the new values, according to the Business Journal, which has advanced with the news. 

It is also certain that pensioners will have to return the amount they have received in excess, but the documents being sent by the CGA do not explain how money can be returned.

With this notification, “the value of the pension has already been changed according to the new understanding, which means that the next pension to be paid will already have the cut announced,” said lawyer Susana Costa Pinto, who works with the North Zone Teachers Union (FNE), in statements to Business. 

What happened?

It was a mistake on the part of the CGA, which led to several pensioners receiving more retirement than they were entitled to – and now they have to return the remainder. 

On the basis of this deception was a “divergence in the calculation of computer application”, said CGA’s chairman, António Valente, who was heard in Parliament. 

António Valente also clarified that this situation “covers a very specific universe” of pensioners, representing “ 0.4% of the total total pensions paid by the CGA, which are monthly in the order of 670,000 pensions”.

“ We are talking about CGA subscribers until August 31, 1993, and who retired with more than 40 years of service”, added the responsible.

What's the difference in values? 

According to the chairman of the Board of Directors of the CGA, the average amount of pensions affected before the “correction” was EUR 2,476 and “after correction EUR 2,382, the average monthly difference being EUR 93 gross”.

In net terms, “the correction of the net pension is on average EUR 59 for an average net pension of EUR 2,300”.

Of the 2,937 pensions allocated, 1,778 (equivalent to 61%) have a value of more than EUR 2,000, he explained, stressing that “the largest individual correction that is quantified is, in absolute terms, EUR 198, in a pension that has gone from EUR 8,107 to EUR 7,909, thus responding to a reduction of 2,4%”.

The president of the CGA also stated that the correction of 2,937 pensions was not directed by the Government: “The correction” of the 2,937 retirement pensions awarded by the CGA between May and August 27, “did not result from any guidance from the Government”, said António Valente.

“There is a legal obligation” to return more paid amount 

The Minister of Labour has already assured that there is legal grounds for the CGA to request the return of the extra amounts paid. The ruler said that “there is not only legal basis but legal obligation to do so”.

“ All payments that are undue, (...) have to be returned and the law requires it to be so”, added Rosário Palma Ramalho, in statements to journalists, on the margins of the 15th UGT Congress.

Palma Ramalho reiterated that due to this “parametrization error”, on average, the affected pensioners will receive less 93.31 euros gross per month, and there are several modalities of return.