It was created as one of the recommendations of the tri-partite Pacto de Toledo of 1995 between government, employers and trade unions.
[3] The establishment of the Social Security Reserve Fund was part of the 1994 Toledo Pact agreement between government, employers and unions.
Under the agreement the surpluses of the social security system were to be paid into the reserve fund with the aim of security pension payments in the future when demographics bring the pensions system into deficit.
[4] The economic crisis caused a significant reduction in employment and a similar fall in payroll taxes leading to a social security deficit.
In 2012 and 2013 the government tapped the fund for 18 Bn eur as a measure to avoid not meeting its deficit target und EU rules.