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April 20, 2023
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The Colorado Party agreed with the government to vote on the pension reform

FA expresses profound differences with the social security reform proposals


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The senator Adrian Pena reported on Wednesday night that the Colorado Party is preparing to vote in favor of the pension reform this Thursday, the day on which the last intermission quarter of the special commission that is considering the regulations in the Chamber of Deputies ends.

After a meeting in which they proposed three changes to President Luis Lacalle PouPeña explained at a press conference that “there was one day of work left to adjust the details and numbers and reach the final proposal, which means that there is an agreement that allows voting on the social security reform to begin tomorrow.”

In his speech, the senator detailed the agreements that the Colorado Party has reached with the Executive to approve the reform. “It has been agreed to establish the minimum normal retirement age at 63 years”, said. The proposal presented to Lacalle Pou implies that a person who has 38 years of contributions can retire at 63 years; with 35 years of contributions, at 64; and with 30 years, at 65.

The PC finally aligns itself with the multicolored coalition

Peña also announced that it has been decided to reduce the IASS. For the first band, the rate will be 8% in 2024 and will be reduced to 6% in 2025. “This tax resignation, added to the one already announced by the President of the Republic, represents a 20% reduction of the IASS in the current period of government”assured the legislator.

In addition, he explained: “We identified a design error that has to do with an abrupt jump among those who had to retire at a certain age. We are proposing a staggering to limit future problems that the reform could have”.

“In this way, those born in 1973 will retire at 61 years of age; those born in 1974 at 62; those born in 1975 at 63; those born in 1976 at 64; and those born in 1977 at 65”, indicated Peña.

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