Collective bargaining and supplementary social security: close to the old "retirement awards", opportunity for "occupational pension schemes"?

At the occasion of the Supreme Court Ruling 603/2022, July 5

Abstract

Collective bargaining in public employment has provided incentives to retire early (retirement bonuses). The latest legal reforms in the field of public pensions encourage, instead, the delay in the retirement age. Consequently, these prizes go against the current legal policies, although they are not illegal. In this changing scenario, retirement awards present intense judicial conflict, which has created great legal uncertainty. This study analyzes these problems and proposes as a future alternative the substitution of retirement awards for the promotion of pension plans of the employment system, which today enjoy legal favor, with important tax benefits for companies and improvements for working people.