The Superior Court of Justice of Andalusia has ruled in favour of a recipient of the Minimum Vital Income in Málaga and rejected the Social Security's appeal, which had withdrawn the aid due to savings in the Mutual Fund for Lawyers.
The Superior Court of Justice of Andalusia (TSJA) has confirmed the right of a family from Málaga to continue receiving the Minimum Vital Income (IMV) despite Social Security withdrawing the benefit, believing they exceeded the asset threshold due to the €37,387 contributed by the wife to the Mutual Fund for Lawyers. The Social Chamber has dismissed the appeal from the INSS, thus supporting the ruling of the Social Court number 9 of Málaga, which had already annulled the termination of the aid, as reported by Diario Sur.
The controversy centres on whether the money accumulated in alternative social security schemes, such as this mandatory mutual fund for lawyers, should be fully counted as assets until it has been withdrawn. The Administration argued that the law explicitly includes these plans, but the TSJA clarifies that they should only be considered when withdrawn, either as capital or income.
The benefit was terminated by a resolution dated 23 December 2022, effective from 1 January of that year, after reviewing the tax information from 2021. The household unit, consisting of the couple and their two children, one of whom is a minor, exceeded the established economic limits at that time. The affected individual filed a complaint and a new application in January 2023, which was also rejected.
The ruling details the asset breakdown: the father had €9,488.07 in the bank and a pension plan of €4,657.75; the wife had another €9,488.07 and €37,387.26 in the mutual fund; and the children had balances of €3,517.17 and €8,486.79, plus a scholarship of €2,444.93 received by one of them for the 2020-2021 academic year.
The trial judge excluded both the scholarship and the contribution to the Mutual Fund for Lawyers, as it is a mandatory alternative scheme for professional practice. With this operation, the computable resources were reduced to €33,209.22, below the threshold of €37,800.84 set for a household unit of four members with a minor.
“The literal interpretation of the regulation leaves no room for doubt,” the ruling states when addressing the inclusion of pension funds, but warns of an essential difference between having accumulated economic rights and having effectively accessed the money.
The INSS previously appealed to the TSJA, which has now turned its back on them. The Chamber recalls that the IMV is designed to prevent the risk of poverty and social exclusion for those lacking sufficient resources, and guarantees a minimum income level as a non-contributory benefit.
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