Vice Minister says that adjustment to solidarity limits will benefit current and future retirees, without affecting the sustainability of the Solidarity Fund

Vice Minister says that adjustment to solidarity limits will benefit current and future retirees, without affecting the sustainability of the Solidarity Fund

June 28, 2023, 12:27 PM

June 28, 2023, 12:27 PM

The Vice Minister of Pensions and Financial Services, Ivette Espinoza, reported that the bill on the Increase in Solidarity Limits and the update of contributions to the Solidarity Fund, will benefit current and future retirees from the Comprehensive Pension System (SIP), preserving its sustainability and guaranteeing a dignified retirement for older adults.

He said that the adjustment to the limits and the solidarity contribution is established in the Pension Law 065 of 2010. Currently, of the total retirees registered as of March 2023, which reaches 213,077, 70% benefit from the Solidarity Fund.

The Bill on the Increase in Solidarity Limits -which the Government sent to the Legislature- has the objective of increase the minimum and maximum solidarity limits of the old-age solidarity pension scale and modify the employer’s contributions and the insured.

In this context, according to Epizona, the project establishes raising the maximum solidarity limit for 35 years of contribution of the Solidarity Old Age Pension from Bs 4,200 to Bs 5,200, for workers in any labor sector (teaching, manufacturing, oil, health, among others). other sectors). Meanwhile, for the metallurgical mining sector it will increase from Bs 5,000 to Bs 6,000.

He indicated that, for raise the solidarity limits, a slight increase will be applied to the employer’s solidarity contribution, the solidarity contribution of the mining employer and also to the national solidarity contribution of the insured who receives a salary greater than Bs 13,000.

“This Solidarity Fund helps to improve the income level of more than 70% (of retirees) who benefit from the contribution of the Solidarity Fund, so it benefits the majority, it does not greatly affect the employer contribution and those who have a higher salary”, Espinoza clarified.

The increase in the contribution of workers to the Solidarity Fund will be applied to those who earn a salary above Bs 13,000; of the total number of insured persons who make a contribution to the SIP, only 6% receive remuneration above said amount. “94% of the insured will not be affected by this additional contribution, only 6% of these contributors who earn more than Bs 13,000”specified the vice minister.

In this context, he clarified that people who receive salaries above Bs 13,000, the calculation of the National Solidarity Contribution will be made on the positive difference between their total earned and the determined amounts, for example, he mentioned that a worker with a salary of Bs 15,000 will make a contribution of Bs 23 to the solidarity fund, increasing by Bs 3 compared to the contribution he currently makes, which amounts to Bs 20. Likewise, he said that those who receive a salary of Bs 25,000 the contribution is increased by Bs 11.

To define this adjustment in the Solidarity Fund, according to Espinoza, an actuarial mathematical study was carried out in December 2022 to project the increase and also define the increase in the employer and insured contributions. “This responds to an actuarial mathematical study that was carried out last year with an external consultancy and based on this study, the increase of workers with a salary higher than Bs 13,000 was established, we have calculated that it could last until 2048, With these measures, the life span that has been given to this fund is maintained,” Espinoza added.

The pThe bill establishes the increase in the employer’s solidarity contribution from 3.0% to 3.5%, as well as the solidarity contribution of the mining employer from 2.0% to 2.3%.

In the same way, increase the National Solidarity Contribution of the insured with salaries higher than Bs 13,000, which is calculated on the positive difference between the total earned or taxable income and Bs 13,000 (from 1.0% to 1.15%), Bs 25,000 (from 5.0% to 5.74%) and Bs 35,000 (from 10 0.0% to 11.5%).

According to information provided by the Authority for the Supervision and Control of Pensions and Insurance (APS), 52% of the insured with 65 years of age or more meet retirement requirements and continue in a work activity, With the modification of Law 065 on Pensions, you can exercise the right to access the benefits of the Comprehensive Pension System. It is recalled that the age of access to retirement remains at 58 years.

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