Last September 2, on the 43rd anniversary of the Nicaraguan Armed Forces, Army General Julio César Avilés thanked publicly to Daniel Ortega that soldiers and sailors were incorporated into the pension system for the first time, without knowing the details of the initiative that is managed in the most absolute secrecy.
In his speech, Avilés declared that they are in a process of “institutional cohesion”, carried out from “love of the country”, while the soldiers were deployed in the Plaza de la Revolución in Managua. According to official data from 2021, the Nicaraguan Army has 15,042 troops: 601 non-commissioned officers, 1,820 officers, 10,451 soldiers, 558 officials and 1,612 classes.
“We highlight as one of the most important achievements in institutional life, the incorporation of our brave and loyal soldiers and sailors to have the right to a pension system for the first time, an achievement that has only been possible due to the firm and determined support that you commander has given us. Thank you president on behalf of our soldiers and sailors,” said the military chief, who was immediately applauded by the military.
However, although Avilés’s announcement is recent, the 2021 budget liquidation report, published by the Ministry of Finance and Public Credit, indicates that State spending under remuneration increased by 1,352 million córdobas last year, supported by the 5% salary adjustment as of August 2021, the increase in personnel in the Ministry of Education, the Interior and the National Police, and the “incorporation of sailors and soldiers to the Pension Fund of the Military Social Welfare Institute (IPSM)”.
An expert in public finances admitted that the Treasury transfer may correspond to the contribution of the State in its capacity as employer for the aforementioned pensions, but stressed that given the lack of transparency of the military and the Executive, which has reached the point that the website of the Military Social Security Institute (IPSM)—the financial arm of the military institution—is officially “under construction”.
“That was a decision that was actually made months ago. Ortega had and has nothing to do with that. In addition, it is necessary to recognize that it is an achievement because soldiers and sailors had been out of the system for 28 years. From what is read in the report, it appears that the Treasury transferred money to the IPSM. Unfortunately, it is not indicated in what capacity, ”he criticized.
CONFIDENCIAL requested information from the Army’s Public Relations office, headed by Colonel Álvaro Rivas Castillo, however, no response was received at press time.
Another Social Security expert agreed that the measure benefits a group that has historically been marginalized within the IPSM system in terms of pension payments, because medical care has always been guaranteed for soldiers and their families. , through an allocation from the state budget.
In addition, he affirmed that military sources revealed to him since last June that soldiers and sailors would contribute to the Nicaraguan Social Security Institute (INSS), where they could opt over time for a Disability, Old Age and Death pension, which is for the average order of 5500 córdobas.
“I have a friend (in the Army) who told me that they were going to enroll him in the INSS like any other State worker. He told me: We are going to start paying, I don’t know the legal framework, that statement (by Avilés) that you are reading to me. I have not known more than that. He told me that they were not listed on the IPSM, we went out on the street without any listed week”, he added.
For him, an actuary would recommend to the military authorities that the soldiers and sailors pay as the normal insured in the INSS, but the medical attention would always rest in the IPSM.
According to article 59 of the Military Code, or Law 181, the members of the military institution must prove a minimum of 21 years of service to qualify for a retirement pension. So far, IPSM affiliates cannot legally be subject to “any other Social Security system”, in reference to the other two existing in the country.
On the one hand, there is the INSS, but there is also the Institute of Social Security and Human Development (ISSDHU), the latter in charge of administering the pensions of the institutions dependent on the Ministry of the Interior and also the Police.
Ex-military: Ortega seeks how to strengthen personal loyalties
The measure to include sailors and soldiers in the pension fund provoked reactions among retired military officers, who described it as an attempt by Ortega to achieve personal political loyalties.
A high-ranking officer, who agreed to speak on condition of anonymity, explained that Ortega has a marked interest in keeping the soldiers as compact as possible, “personalizing and conditioning the Avilés leadership and command to the social right that every worker of the State in particular that which has occupational risks.
Retired Major Roberto Samcam added that soldiers generally have a high turnover, that is, they tend to leave the Army shortly after. That is why they renew their contracts every two years. Until before the current announcement, medical attention was received at the medical posts of the military units and then they had to use the public hospital system to finish treating themselves.
Samcam added that the direct benefit obtained by the Army is to guarantee a permanent workforce without hiring soldiers from time to time. “At the end of the day, the State could take over, through the INSS, the retirements, which will be when they complete a certain period of service or the retirement age, which is very likely to leave before and lose everything quoted. Samcam insisted.
For another retired military officer, the measure announced by Avilés seeks to revitalize the INSS coffers, diminished after the 2018 crisis. In his words, it is “a business that will be fed with the contributions of thousands of soldiers” who end up leaving the institution for Any reason. “And then what is going to happen to that money that they supposedly quoted for their retirement insurance? It will surely be lost as it happened between the 1980s and 1990s, ”he lamented.
