The objective of this paper is to evaluate the distributive effects of the 1997 reform to Social Security retirement pensions. On the basis of a life cycle model, we draw a comparison between the hypothetical capitalised value that the contributions of the new pensioners would have achieved and the expected discounted value of their pensions. The difference between both defines a transfer which is calculated under the pre and post July 1997 legislation, both by reference to pension regimes and amount, which allows us to evaluate the consequences of the reform for the intmgenerational equity of the system. The results show an appreciable reduction of the transfer in the General regime and a maintenance of transfer in the others, with the latter being due to the compensating effect of the complement for minimum. If these complements are not considered, then the new method for calculating the initial pension does not correct the regressive factors that are present in the system, which therefore continues to offer higher percentages of initial pension transfer to the highest pensions levels.

Keywords: state pensions, equity, social security.