Caja de Profesionales works on “express law” to attack the deficit: what does it consist of?

The Retirement and Pension Fund for Professionals (Cjppu) works on the elaboration of an “express law” to face the deficit which he has been carrying for several years.

This project will be presented to the Executive with the aim of arrive “as soon as possible” in Parliamentsaid to The Observer the president of the organization, Virginia Romero. “We believe that next week (Monday, August 22) will be the last presentations and a decision must be made,” she assured.

At the same time, the government is also working on the social security reform; In this regard, Romero said that he “is aware” that this issue is on the table, but added that “the Executive also has the idea that enter more or less parallel to each camera for them to have their treatment.”

What does it consist of?

Romero explained that this express law provides for “going down” the deficit generated by the Fund, which amounts to about US$ 2 million per month. The task force is finishing calculating when the proposed measures will begin to have “full effect”.

Thus, the initiative suggests four main guidelines or “parametric changes”, according to the president of the Cjppu: modify the retirement age (increase it from 60 to 65 years), increase the average basic retirement salary, also reduce the replacement rate and, finally, raise it from 10 to 15 the categories they contribute.

Regarding the second modification, Romero maintained that the body “takes three years to establish the basic retirement salary” and, thus, proposes gradually increase it “until it approaches the rest of the social security system”. The proposal, “in principle”, is to take it up to 18 years —in the rest of the system it is between 20 and 25—.

For its part, the modification of the replacement rate consists in decrease from 50% to 45% of the basic salary as a replacement rate, as the rest of the system has, also gradually.

Finally, it is proposed raise the contribution categories from 10 to 15. “Many times in the lower categories the jumps are important; today a category change suddenly doubles: if you are contributing $4,000 [pasaría a] contribute $8,000. So what we try is that, with 15 categories, the jumps are smaller and even the 15 categories accompany the 65 years, because that way you can easily reach 65 years of age to retire with 15 categories, “argued the president of the organization .

How are they linked to the general reform project?

Romero asserted that the express law and the draft social security reform do not overlap in their contents.

“We try that these changes are already in operation with the other, because they are not incompatible”, he underlined and also added that the proposals of the express law are “things that already have within the system”.

“That is why it is necessary to do it before for the Fund, because the other systems already have it,” he pointed out.

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