SPAIN - The Spanish government has paid out €429.7m to more than eight million pensioners to compensate for the unforeseen rise in inflation in 2006.
The Ministerio de Trabajo y Asuntos Sociales (ministry for work and social affairs) today paid an average of €60 each to retired pensioners in compensation for the unexpected 0.6% rise in prices seen over the 2% predicted rise.
State pensions for 2007 will also rise from this month, by between 2.6% and 7.13% on last year's amounts.
Spanish law guarantees the purchasing power of pensions remains the same, regardless of inflation. For this reason, pensions are reevaluated at the start of each year with regard to the Consumer Price Indices for the year just finished and the year ahead.
In the last three years, the minimum pension has increased by between 19.78% and 24.99%.
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.