Insurance systems for lawyers

Lawyou — viernes, 26 de febrero de 2021

The main duty of lawyers is to have social security coverage.
The Law 30/1995, of November 8, 1995, on the Regulation and Supervision of Private Insurance, provides for two social security systems, the one provided by the Social Security and the one provided by the Mutual Insurance Companies.

The Social Security provides, on the one hand, the general system for lawyers subject to an employment relationship (RGSS), i.e., for those professionals who work as employees and, on the other hand, the system for workers who practice law on their own account (RETA).

However, self-employed lawyers also have the possibility of belonging to the RETA.

Mutualidades de Previsión Social

which act as an alternative to the RETA, which are private insurance entities created by the Professional Associations and which are not-for-profit.

There are two types of Mutual Insurance Companies, the Mutualidad General de la Abogacía Española or Alter Mutua.


What is the RETA?

In the RETA, the contributions made by the lawyer are not accumulated in his favor and the benefits received are financed with the current contributions of the active workers at that time. In addition, the coverage provided by this scheme is exactly the same for everyone.

In contrast, the mutuality system is a system of individual capitalization, i.e., each mutual member accumulates his contributions independently of those that may be made by other mutual members, so it is a guarantee for the future.The question posed does not have a single answer: it will depend on the needs of each lawyer, assessing the benefits and coverage provided by each of the entities.

What are mutual insurance companies

Attorneys’ mutual insurance companies are privately managed entities that offer, to date, a higher number of coverage and services than those provided by the public pension system.

Lawyer as an employee mutual insurance company

In addition, the mutual insurance companies of the legal profession are offering higher yields in their pension plans than their counterparts in other professions, and compared to the Social Security system they make it possible to combine professional activity and access to a retirement pension.

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