Social Security maintains automated controls to detect pensioners who return to work without first notifying the administration, a situation that can lead to repayment proceedings also in Tarragona.
The contradiction arises when a retiree combines employment and pension without availing themselves of one of the avenues provided by law. Although there are legal ways to continue working after retiring, those who do not report it must return all amounts unduly collected during that period.
The law requires the return of all pension received during uncommunicated work
The general rule establishes that retirement pensions are incompatible with any employment, whether for an employer or self-employment, except in cases expressly provided for by legislation.
If the pensioner resumes work activity and does not report it, Social Security can claim the full amount received during the period of incompatibility. Furthermore, the Labor Inspectorate may classify the lack of communication or non-payment as a serious offense.
In such cases, the procedure is not limited to reimbursement. The action may include financial penalties and the temporary loss of the benefit, in accordance with the mechanisms provided for such breaches.
Self-employed workers and active retirement do allow combining income and pension
Not all situations are the same. Self-employed workers can maintain their activity as long as their annual income does not exceed the Interprofessional Minimum Wage, although this continuity does not generate new pension rights.
Legislation also includes Active Retirement, which allows working full-time or part-time and generally receiving 50% of the pension, provided that the required age and contribution requirements are met.
Along with this option, Flexible Retirement allows returning to the labor market in a company with a proportional reduction in the pension. In this case, the working hours must be between 25% and 50%.
Prior procedure with the INSS avoids repayment proceedings in Tarragona
To avoid repayment proceedings, the key step is to report the situation before starting work. The procedure can be done by appointment at the offices of the National Institute of Social Security or through the Electronic Office.
The obligation does not change by territory. The regulation applies in the province of Tarragona with the same criteria as in the rest of Spain.
Before returning to work, the pensioner must report it to the National Social Security Institute by appointment or through the Electronic Office.