The Retirement and Pension Fund for University Professionals (Cjppu) submitted to the executive new measures to alleviate the financial crisis that the organization is going through. It was raised from raising the rate of asset contributions to increasing the amount of fictos of the system.
This Tuesday, the interim president of the Cjppu, Daniel Alzatogether with the directors Blauco Rodriguez and Fernando Rodriguez Sanguinetti and the directors appointed by the Executive Power, Luis González and Gerardo López SecchiThey met with the Minister of Labor and Social Security, Pablo Mieresthe Undersecretary Mario Ariztithe director of the Office of Planning and Budget (OPP), Isaac Alfie and authorities of Ministry of Economy (MEF). The president of the Committee of Experts on Social Security, Rodolfo Saldain, also participated.
Alza said at a press conference that the Board of Directors developed in recent months “a series of possible scenarios, modifying some parameters” of the Organic Law of the Savings Bank “to balance the accounts of the institute and, with those scenarios quantified and backed up with actuarial information“They handed it over to Ministry of Labor and Social Security (MTSS).
According to Alza, the proposal consists of a series of “parametric changes” that they will act to short and medium term while others aim for the long term. Measures for the short and medium term They go in the line of increasing income “either by raising the contribution rate of assets or with a participation of retirees”.
Camilo dos Santos
The long-term ones go on the side of being “corrective” of the parametric system: retirement age, basic retirement system, replacement rate and benefits that the assets have today. “These are proposals and global scenarios. After the delivery of this material, the next work meeting we have will begin to prepare the general package that will be”, added the director of the Cjppu.
Another of the measures proposed by the Board is that of increase the fictitious system to 15 categories, which today has 10. “We are proposing to go to 15 categories where the jumps between categories are smaller and protect the lower categories, which is when the professional begins to work”, he explained.
Blauco Rodríguez, for his part, pointed out that this measure seeks to “the jumps between categories are much smaller”, around $1,000 or $2,000. “It is so that it has less impact, especially for new professionals who are starting their careers. We want to transform that and make it a friendly box with the affiliate”, he expressed.
Rodríguez valued as “very positive” the meeting with the Executive and said that “none of the proposals was rejected by the MTSS”. In turn, he reported that formed a working group between the Cjppu and the MTSS to work and obtain results in the coming weeks.
“We have faith that this challenge that we took when we presented ourselves for the election, knowing the critical economic and financial situation of the box, We are going to be able to move it forward so that after time for the transformation and paradigm shift that the box needs”, he stated.
Alza clarified that the reform of the Cjppu is aimed at going “on an independent path” to that of the reform of the Uruguayan pension system that will soon enter Parliament. “It has to go an independent path due to the urgency that the box needs. Let us not forget that next year, in October, Parliament can no longer take action to change the reality of the fund, so it has to do so this year urgently”, he added.
“The fund has funds until 2024. We are working to make it more viable in the short and medium term”, affirmed Alza.
The Board of Directors of the Cjppu seeks to address the financial crisis facing the organization and which meant close 2021 with a deficit of $2 billion (US$49.9 million). In turn, the red numbers of the state-owned box for the 2021-2026 period would be between US$ 166 million and US$ 262 million in a medium scenario, while in a pessimistic scenario the estimated amount of the deficits would range from US$ 238 million up to US$ 329 million.
