Andorra Parliament Backs Pension Cap Despite Marginal Impact Warnings

Parliamentary groups in Andorra have described a proposed cap on the highest pensions as having only a marginal impact on efforts to shore up the retirement system, despite broad agreement on its principle.

The measure, under discussion in the legislative pensions commission, would limit maximum payouts. Currently, just 32 pensions exceed 4,500 euros monthly—three times the minimum wage. Jordi Jordana, president of the Demòcrates group and a commission member, told Diari d'Andorra the idea is "not among the most problematic to implement," having arisen in prior debates. He cautioned, however, that any savings "would not be very high."

Pol Bartolomé, general councillor for Concòrdia, noted divergent views on pairing the cap with limits on maximum contribution bases, to prevent high earners from paying above pension ceilings. Still, he said savings would be "minimal," though the proposal enjoys wide consensus. His colleague Jordi Casadevall called it an "aesthetic" step driven by "solidarity."

Susanna Vela, general councillor for the Partit Socialdemòcrata (PS), offered the sharpest critique, questioning its value given the limited returns. She stressed it must accompany broader changes, such as reviewing contribution caps, and opposed raising the retirement age without more data. Independent reports commissioned by her group, she said, show extending contributions by two years would not address the deficit and prove "wholly unpopular."

Demòcrates will table this as the first package of measures on 18 March, confirmed Jordana, to kick off formal talks and provide a negotiation base. It will build on prior discussions, including potential contribution hikes or a complementary private pension system—though PS has drawn a red line against privatisation, prioritising the public model's viability.

Vela reiterated that private plans clash with their vision of a strengthened public system.

Concòrdia plans to explore options through March and early April, with Casadevall emphasising the value of a starting proposal. Meanwhile, he has focused on advancing a consensus land law reform, set for General Council processing on 12 March, aiming to extend cross-party agreement into the pensions commission.