The January pensions paid by Caixa Geral de Aposentações (CGA) were also processed based on a provisional retention table, but no adjustment will be made as residual values are at stake.
The January pensions paid by Caixa Geral de Aposentações (CGA) were also processed based on a provisional retention table, but no adjustment will be made as residual values are at stake.
The January pensions paid by Caixa Geral de Aposentações (CGA) were also processed based on a provisional retention table, but no adjustment will be made as residual values are at stake.
“The CGA reforms for the month of January 2024 were processed based on a provisional IRS withholding table,” he said, in response to Lusa, an official source from the Ministry of Labor, Solidarity and Social Security.
But in this case, and contrary to what was clarified this Monday by the Social Security Institute (ISS) in relation to Social Security pensions, “the adjustment will not be made”, said the same official source, adding that this decision was taken by the CGA Management “because residual values are at stake”.
In a statement, the ISS clarified this Monday that adjustments were made to the IRS withholding of April and May pensions to correct the withholding made in January based on a “provisional” table for 328 thousand pensioners.
The statement came after Jornal de Negócios, in its edition this Monday, reported that there are pensioners who were faced with a reduction in the net value of the pension paid in May, without the receipt providing an explanation for this fact — since the gross value of the pension was maintained, as was the tax withholding rate, but not the amount of the discount.
This issue of the provisional retention table and subsequent adjustments took the new Government by surprise, with the office of the current Minister of Labor, Maria do Rosário Ramalho, revealing “astonishment” and highlighting that the matter was not transmitted by the previous executive.
“The decision of the previous Government was not, at any time, mentioned during the transition meeting with the current Minister of Labor, Solidarity and Social Security, nor was it signaled at any level to the current Government before being implemented”, says the statement from the Ministry of Labour.
Furthermore, he adds, Maria do Rosário Ramalho and her Secretary of State for Social Security received the president of the Social Security Institute on April 22 and “she said nothing about the issue”.
Maria do Rosário Ramalho’s office also states that this pension adjustment measure “processed in mid-March (after the elections) and implemented on April 11 and 12, results exclusively from the political orientation of the Socialist Party Government, and which the current Government had no prior knowledge”.
“In January 2024, it was decided to give an artificial idea of an increase to pensioners with less IRS withholding so that this adjustment could later be made, after the elections, in the transition period”, notes the same Government statement.
Included in that group of 328,000 Social Security pensioners is the return of excess IRS withheld from 184,000 pensioners (which was done with the April pension) and the adjustment of the under-withheld amount to 143,800 pensioners — carried out with the April pensions. May and which resulted in a lower net value for these people.
