Colorado Senator and former Minister of the Environment Adrian Pena confirmed on Wednesday night that Luis Lacalle Pou and the Colorado Party (PC) they reached a agreement and the social security reform it will be voted finally this Thursday in the special commission of the Chamber of Deputieswith the accompaniment of all the partners of the government coalition.
The PC had approached the Executive Tower yesterday three proposals to modify the project, after the changes it achieved Open Town Hall (CA) last week. After the meeting with the President, Peña commented that the president had accepted the initiatives.
On Wednesday night, Peña explained at a press conference: “Yesterday’s proposals were accepted by the President. There was one working day left to adjust the numbers and reach a final proposal.”
In this sense, he confirmed: “There is an agreement that allows to start tomorrow (Thursday) with the vote of the social security reform”.
In turn, Cabildo Abierto agreed to the changes proposed by the colorados. “It is with great satisfaction that we can announce this agreement with the Executive Branch and that tomorrow when the intermission room is lifted we will be able to start voting in committee the project,” Peña said.
What are the 3 changes that the Colorados proposed and Lacalle Pou accepted?
The three modifications were explained by Peña when leaving the meeting on Tuesday, but in the third, linked to the Social Security Assistance Tax (IASS), details were missing, which have already been settled.
Minimum number of years worked
The first modification is linked to the minimum number of years worked. The minimum age will be 65 years for those who have contributed for 30 years, but with the new red proposal, those who have contributed for 35 years may retire at 64 and those who have done it for 38 years will be able to do it at 63 years old.
Project design error
Second, the colorados detected a project design error, which was communicated to Lacalle Pou, and which will be corrected in the next few hours. As the document was written up to now, those born in 1972 could retire at 60 years of age, while those who did so in 1973, at least 63 years of age, which meant an unfounded jump.
“Those born on December 31, 1972 retired by one system, (while) the next day they retired by another, it was a abrupt jumpPena explained.
With the new modification, it will be gradual: about those who were born in 1973 there will be one minimum age 61 yearsabout those of 1974, of 62 yearsabout those of 1975, of 63 years, about those of 1976, of 64 yearsand about those of 1977, of 65 yearslike the rest.
Reduction in the IASS
Leaving the meeting on Tuesday, Peña announced that the third change would be a reduction in the Social Security Assistance Tax (IASS), a point much discussed by the Cabildo Abierto as well, although he commented that the magnitude of the tax relief and details were yet to be defined.
Today it was confirmed that it will be a discount rate reduction and the benefit will be destined to the first band of the tribute –between 45,280 and 84,900 pesos–. Thus, the discount will go from being 10% to 8% in 2024, and will remain at 6% in 2025. “In this period of government the total reduction of the IASS will be 20%Pena said.
Source: Ambito
