The director of the Office of Planning and Budget (OPP), and former Minister of Economy, Isaac Alfieassured at a press conference that some criticism that the social security reform is receiving, coming from the broad front and the PIT-CNT“they are fantasy“. The opposition party and the trade union center had assured that “two out of three” people would earn less if the reform were approved.
Alfie dismissed the criticism, maintaining that “reality is reality“, prior to stating that “we present the numbers by income deciles”, since individually, “each person has a career path” with a different result “even if they had the same income”.
According to the hierarch, within these deciles of people there are “a group of 50% that is clearly going to have a higher retirement income than it is today at age 60“, since the valid comparison that the government maintains is “65 years vs. 60 years“, and not 65 years against 65 years.
A similar fate would run to those of the top 20%where “the 5-year extension of the level of capitalization would provide these people with a higher income”, while the remaining 30% of the average of these deciles would be in a situation similar to the current one, according to the technical calculations of the Social Welfare Bank (BPS), Alfie said.
In turn, the director of the OPP denied that there will be changes in the current financing, since currently in the BPS half is a contribution, while the other half is “general taxes that everyone pays”, including their own retirees, since “this is the case everywhere in the world”, because “the systems are no longer financed by active workers” because “the amount of assets for liabilities is not enough to finance retirement“.
Along these lines, he assured that “contribution rates in Uruguay are very high“, and explained that only for the pension system (22%), this is higher than the average of the members of the OECD (Organization for Economic Cooperation and Development) where it belongs to 18%. Likewise, the country has the contribution of a health insurance section of personal income tax “of very high rates in international terms due to its unconventional architecture”, when “in the world” health insurance is covered in “IRPF”.
The member of the Executive power He was confident that the reform will materialize and will have the votes of Town meetingthe sole partner of the Multicolor Coalition who has questioned accompanying the project. At the same time, he flatly ruled out raising taxes on the income of large companies, since they contribute the 40% of the rentand in some cases the fifty% of your profit.
The “retirement calculator” is “academically” very strange, Alfie said
The former Minister of Economy maintained that “academically“it turns out”very strange“The Run”retirement calculator” presented by the Center for Economic Research (five) so that workers can calculate their future retirement if the reform is approved.
Alfie insisted that it seems strange to him that “you can put five data” into a calculator and get a general result, when all the calculations are individual, something that, in his opinion, “does not contribute to the debate in a serious way” .
Source: Ambito
