After negotiations this weekend, President Luis Lacalle Pou informed the members of the coalition that agreed to change the retirement calculation to an average of the best 20 years of workinstead of the 25 that the project settled.
This change generated differences on the side of the Colorado Party, which not willing to vote on changes without the reform team headed by Rodolfo Saldain Explain the magnitude of the changes. Sources from that political force told The Observer that they will not support the initiative if it jeopardizes the sustainability of the systemone of the fundamental premises of the entire project.
“These changes disrupt what the reform is. The main change is to go from 25 to 20 years. All the calculations are based on the best 25 years. What we want is to have a few hours to study in depth to see what degree of impact it has in the State and Society. From what they told us, this could cost between US$280 and US$350 million and perhaps it would disrupt the sustainability of the system,” said Colorado legislator Conrado Rodríguez, on Telemundo (channel 12).
For his part, Colorado deputy Jorge Alvear said that they will ask the Executive branch to report the cost of these changes in the reform. From there, they will analyze the steps to follow.
On the other hand, the editor of the social security reform, Rodolfo Saldaínrecognized that the change proposed by the Cabildo Abierto “improves the monthly salary, especially in the middle and upper income sectors.”
In an interview with the program En Perspectiva (Radiomundo), Saldain explained that the modification of the calculation from 25 to 20 years of average will imply an increase in spending of 0.3% to what was plannedand stated that “That increased spending is going somewhere, especially to sectors with greater wage mobility”which are part of the top five income deciles.
