Social security clearly defines its pension system and, although it does not prohibit pensioners from returning to work, they must apply for the so-called flexible retirement scheme. If they return to work without notifying social security, the latter may initiate proceedings to recover the amounts unduly received. As in Portugal, the situation is very similar to that in other European countries.
This is what happened to a 66-year-old pensioner who, after working four days in a bar and earning €180, will have to repay €29,000 to the National Social Security Institute.
It all started when this pensioner, who took early retirement in 2021, earned €180 net for a one-off job. According to the data, this job consisted of four days’ work in a brewery during the National Alpine Rally. This may interest you The Ministry of Finance publishes in the Official Journal the measures for the refund of up to €4,000 to pensioners who have overpaid IRPFA tax Social Security will add the years remaining until retirement age for workers who have acquired the right to disability retirement
Apparently, according to Portuguese law, people who benefit from “Cuota 100” cannot engage in any paid activity during the period in which they receive their early retirement pension, unless that activity is carried out on a self-employed basis, i.e. as a freelancer, and provided that their income does not exceed €5,000 per year.
‘The institution must strictly comply with the rules,’ referring to Legislative Decree 4/2019, which prohibits working while receiving early retirement benefits, except in the cases already mentioned.
They told him yes, he could work
The pensioner explains that, before accepting the job, he contacted the Portuguese social security authorities, who confirmed that he could work without any problems and did not have to fear losing his pension, although, as he points out, this was said verbally and not in writing. However, despite this confirmation, the INPS imposed a fine on him, forcing him to return all the money he had received as a pension for a year.
The case went to the social court, which in Portugal is responsible for resolving labour and social security disputes. After reviewing the case, the court decided to uphold the penalty imposed by social security and the pensioner must return the pension payments he received illegally for a year, amounting to €29,000.
Despite having to pay €29,000, €650 per month, he requested a reduction in the amount, which was accepted by social security, and now he will only have to pay €430 per month. This means that he will repay the money over approximately five years, until he has covered the total amount demanded by the INPS.
On the other hand, the pensioner explained that his intention was only to “help” by signing a deposit contract to cover the insurance costs and that in no case did he intend to obtain any financial benefit. The victim is currently considering the possibility of appealing, given that there are other similar cases in the country.
Although this measure is somewhat disproportionate, the INPS maintains, for the time being, its position of ‘strictly applying the law’ in similar situations, without making exceptions for small amounts.
