CGA pensions will not have IRS withholding adjustment, says ministry
The January reforms paid by the General Pension Fund (CGA) were also processed based on a provisional withholding table, but no adjustment will be made because the amounts involved are residual.
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Economia Trabalho
"The CGA reforms related to January 2024 were processed based on a provisional IRS withholding table", said an official source from the Ministry of Labour, Solidarity and Social Security in response to Lusa.
But in this case, and contrary to what was clarified today by the Social Security Institute (ISS) in relation to Social Security pensions, "no adjustment will be made", said the same official source, adding that this decision was made by the CGA's Board of Directors "because the amounts involved are residual".
In a statement, the ISS clarified today 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 328,000 pensioners.
The statement came after the Jornal de Negócios, in today's edition, reported that there are pensioners who were faced with a reduction in the net amount of their pension paid in May, without the receipt explaining this fact -- since the gross amount of the pension remained the same, as did the tax withholding rate, but not the amount of the discount.
This issue of the provisional withholding table and subsequent adjustments took the new government by surprise, with the office of the current Minister of Labour, Maria do Rosário Ramalho, expressing "astonishment" and stressing that the matter was not communicated by the previous executive.
"The decision of the previous government was not mentioned at any time during the transition meeting with the current Minister of Labour, Solidarity and Social Security, nor was it signalled at any level to the current government before it was implemented", says the statement from the Ministry of Labour.
In addition, it 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 did not mention anything about the issue".
Maria do Rosário Ramalho's office also states that this measure to adjust pensions "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, of which the current government had no prior knowledge".
"In January 2024, it was decided to give an artificial impression of an increase to pensioners with less IRS withholding, and then to make this adjustment after the elections, during the transition period", notes the same government statement.
This group of 328,000 Social Security pensioners includes the return of excess IRS withheld to 184,000 pensioners (which was done with the April pension) and the adjustment of the amount withheld from 143,800 pensioners -- which was made with the May pensions and resulted in a lower net amount for these people.
Read Also: IRS. Tax authority does not charge less than €25 and does not refund less than €10 (Portuguese version)
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