Tax incentives and competition. These are the two main claims of the bosses Inverco, ATA and AEFI to the Government of Pedro Sánchez on the occasion of the future employment pension funds of public promotion that the Executive has proposed. Within the competition, a key aspect: that small managers can capture investment mandates, and not just the big ones. And these associations also aspire to a progressive adoption of these vehicles.
In the informative meeting ‘Employment pension plans: waiting for the necessary boost from the second pillar’, organized by Caser Insurancethe general director of Inverco, Elisa Ricón, has harshly criticized the proposal that only managers with more than 1,000 million euros in pension funds can choose to manage the new public promotion plans.
“It’s about competing in a free market economy. The little ones must enter and not be left out by volume. It is worth that it can be limited by price, but not by size”affects Ricon.
According to data from these employers, currently only 3% of SMEs have contracted a private pension plan, a figure that rises to 10% in the case of the self-employed.
The Government’s plan is that these majority groups within the Spanish economy are incorporated into complementary social security through its new formula. The intention has been well received by the sector, although not so much in terms of the implementation model.
That the third system is not ‘closed’
For Celia Ferrero, vice president of ATA, the National Federation of Associations of Self-Employed Workers, “it is good that the platform that has been proposed is digitized”, although she has wanted “Let the Public Administration not do it”thus doubting its ability to design a digital platform for joining and contracting plans in an agile, clear and efficient way.
In addition, they hope that the adoption of these new funds and pension plans will be “very progressive”. “That they advance at the same time as the digitization of the self-employed and SMEs evolves and adapt to the changing employment environment,” Ferrero would like. In any case, they still have to be debated with the different social actors and processed the Preliminary Draft Law Regulating Publicly Promoted Employment Pension Funds and Simplified Employment Pension Plans.
A common complaint of the three associations is that, “without having fully developed the second pillar of pensions (companies), they ‘close’ us the third (individual) with fewer tax benefits [y se ha llegado a mencionar su posible supresión]contrary to what is happening in Europe, where the second pillar is highly developed and now comes to us, through the third pillar, the pan-European pension plans”.
Asier Uribeechevarría, WealthTech member of AEFI, the Spanish Association of Fintech and Insurtech, has highlighted an important aspect. “It is positive that there is external competition, but also that space is left for those from here.” as feared, “Either we generate this industry from within, or they will come from outside and others will do it.”
From Inverco a jug of cold water has also been thrown at the claims that Sergio Álvarez Camiña, general director of Insurance and Pension Funds, made last week about the little influence that current employment plans have as institutional investors in companies or the governments where they invest given their low volume. “Even if the system is multiplied by five, the ability to influence will continue to be limited. More and more is being invested globally and less in Spain. The Spanish stock market does not even reach 1% of the world capitalization of all trading floors. It would be rare for a Spanish employment fund to say something about Apple”, Ricón gave as an example.