Retroactive Pension Compensations
With a delay of 56 years, the Tax Agency is forced to correct an error in the contributions of workers who were affiliated to the old labor unions between 1967 and 1978. These workers, who worked in sectors such as banking, construction , metallurgy or trade, were taxed 100% for future pensions when, in reality, they were only entitled to 75%. Now, as pensioners, they have the right to claim a personal income tax refund, with an estimated compensation of between 2,000 and 4,000 euros through a supplementary declaration.
The Road to Compensation
Ruling 255/2023 of the Supreme Court has given retirees the right, allowing them to request this refund in their personal income tax (IRPF). This ruling, initially related to the Mutualitat Laboral de Banca, has been extended to all workers who were entitled to retirement or disability benefits during the same period. In addition, it has been established that the children of retirees are also entitled to a refund if no more than four years have passed since the death of the retiree.
Implications and Future
The ruling is based on the Income Tax Act 35/2006, which states that only 75% of retirement or disability benefits must be included in the tax base. This also affects public officials such as police officers or teachers who contributed to the old mutuals. It is important to emphasize that the compensations can only be requested in the statements of the last five years, until 2022, and that the tax reduction will be applied in future tax statements, with an estimated saving of between 500 and 1,200 euros.
