Government transferred US $ 374 million to cover the deficit of the Military Fund

The Ministry of Economy and Finance (MEF) was authorized at the end of December to once again transfer money to the Retirement and Pension Service of the Armed Forces a total of US $ 374.5 million, equivalent to $ 16,500 million to cover the gigantic deficit of this retirement system for fiscal year 2021.

According to the resolution that enabled the transfer, the total amount was recommended by the Budget Division of the Planning and Budget Office (OPP), and was not objected by the Macroeconomic and Financial Advisory office of the MEF.

This amount was lower than the one contributed by General Income in 2020, which was a total of US $ 403 million.

Those were the amounts contributed by the State to the Military Fund in recent years, to deal with its constant red numbers:

• 2015: US $ 362 million
• 2016: US $ 379.5 million
• 2017: US $ 419 million
• 2018: US $ 450.5 million
• 2019: US $ 450 million

The Retirement and Pension Service of the Armed Forces has a total of 51,000 liabilities -which collect pensions and retirements-, but only 27,000 active civil servants who make contributions every month. The asset-liability ratio is 0.53 contributor for each liability, the lowest in the entire pension system.