Like a patient who tragically continues to die while waiting for someone to take the lead that defines his fate, this is how the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) described the situation of the Social Security Fund’s Disability, Old Age and Death program. (CSS), in which all Panamanians are represented.
They mentioned that 15 years ago the system introduced a “patch” and since then it was known that only time was being bought. “The need for a structural reform, which would be painful for everyone, was imminent. However, none of the government administrations wanted to take on the challenge, with no greater justification than avoiding having to deal with a problem of this magnitude and its consequent political cost. And is it that perhaps the main role of the Government is not to implement the measures that generate the greatest benefit for our population above political considerations?
More than 80% of the population contributes to the CSS with the expectation of receiving a pension when they can no longer be part of the active working population. The truth is that, in the 1940s, when the institution was created, people lived an average of 10 years more after retirement age; today life expectancy has been extended to more than 25 years and continues to be extended. Mathematics simply does not work, the contributions and their yields are not enough, and for this reason the reserves have been drained to the point where they are about to disappear.
The Actuarial Technical Board determined that time has run out, the reserves reach until the last quarter of 2023. “The patient dies and with this we will not only have to introduce the structural changes that we have avoided implementing for years, but also the cost being hospitalized for so long will be higher for everyone,” they said.
For more than 15 years, CCIAP has insisted and called for urgent reforms to the structure and governance of the CSS. The National Government has no more time and has to act.
In 2021, the employer sector participated in the dialogue established by the National Government, reiterating the importance and need for the worker sector to be part of it. Hence, at the time, we considered beneficial the intervention of the International Labor Organization (ILO) – institution that has the endorsement of both parties. However, it was said that this body would deliver a report between July and August of this year, but it has not arrived; Meanwhile, the CSS is dying, and it really can’t last another second.
The diagnosis has been given for years; however, this administration has the last chance to lead a change in the system that guarantees its economic sustainability and the future well-being of all Panamanians.
Proposing short-term proposals that ignore the demographic and economic reality of the country is to deceive the population, and condemn the country to failure. The moment requires us to be realistic and face the situation responsibly, in order to ensure the future of all Panamanians. Mr. president! If there is a decision that must be made with a profound impact on the quality of life of its people, this is it. Save our patient.
