By Charlotte Reid 
The Madrid High Court upheld the decision of the state agency, ruling that he had combined the provision of services with work without proper notification.
The pensioner was forced to return almost €60,000 of his benefits. The High Court of Madrid confirmed the legality of the sanction imposed by the Social Security Service, which suspended his pension after discovering that he was illegally combining it with work as an exam preparation tutor. The ruling emphasises that the pensioner violated the rules by not declaring his employment status.
The initial warning that was ignored
The story began in 2017, when the victim began receiving a permanent disability pension under the state pension system. The decision to grant him assistance already contained a key warning that played a decisive role in the court proceedings. It stated that ‘receiving a pension is incompatible with employment or a managerial position in the public sector, as well as with any activity, whether self-employed or employed, that falls under any public social security programme.’
Three years later, in 2020, the Main Treasury of Social Security discovered that the pensioner had registered with the RETA (Special Regime for Self-Employed Workers) system to work as a tax advisor. This discovery led to the immediate suspension of his pension payments and a claim for the recovery of undue payments totalling €58,678.38. Unfortunately, this situation affected many other people, including this pensioner from Seville.
Legal proceedings and court ruling
In his defence, the victim filed a lawsuit, claiming that his professional activity was temporary in nature. He also claimed that employees of the National Social Security Institute (INSS) had verbally assured him that he could combine his pension with employment income if it did not exceed the minimum interprofessional wage (SMI). However, the administration rejected his claim.
The case eventually went to court, where the High Court of Madrid ruled in favour of the Social Security Service. The decision was based on Article 33 of the Revised Text of the State Pensioners Act, establishing that the pensioner had breached his obligations. Not only did he fail to apply for compatibility with active retirement, but he also failed to report his registration with the RETA (Taxpayers’ Registration Service).
Absolute incompatibility in passive classes
One of the key aspects of the court’s decision is the clarification of income limits. Although there is a rule that the minimum wage (MW) must not be exceeded when combining a pension and work, it only applies to certain cases of disability or in the general pension system, but not in the pension system. It is extremely important to understand how pensions work in the UK, as for this pensioner, the incompatibility was absolute.
The Madrid court’s decision highlights the importance of understanding the detailed obligations associated with each type of pension. The only legal way for the affected person to continue working would be to apply for an active pension, a mechanism that has its own rules. This case serves as a warning to thousands of pensioners whose pensions will be limited in the future and who need to clearly understand the rules to avoid surprises.