The reform project for the Retirement and Pension Fund for University Professionals (Cjppu) that he Executive sent to Parliament —and is currently being discussed in a Lower House committee—continues to generate warnings from members: on this occasion, the University Group of Uruguay He warned that the crisis that the institution is going through “could occur sooner than expected” if the increase in the contribution rate is applied.
Criticism of the rescue of the Professional Box They continue to be added, despite the limited time that the body has to achieve its approval before the constitutionally allowed period ends; and while the eventual financial crisis due to the depletion of its resources, it remains set for mid-2025.
In this sense, on Wednesday they appeared before the Labor and Social Security Legislation Commission of the Chamber of Deputies the Independent Professionals group and the University Group of the Uruguay. Both groups warned about the harmful aspects that were included in the project, many of which were also pointed out by the Cjppu board itself.
Criticisms of the reform of the Professionals Fund
According to Independent Professionals, the proposal presented by the government represents “one more link in a long chain that began several years ago” with the objective of “liquidating the social security model” of the organization through “discredit”, in order to “reach that the money of our workers has the intervention that today the “AFAP.” This is what he assured Sergio Bedrossian, who attended the commission on behalf of the group.
In addition, Nelson Toledo Another member of the delegation emphasized the creation of the new tax of between 2% and 10% for retirements exceeding 33,960 pesos that includes, among other things, the reform project: if this new tax is added to the one that retirees already pay as Social Security Assistance Tax (IASS)the liabilities of the Professionals Fund “will reach, on average, 11,000 pesos to be deducted” from their pensions. Double taxation, he maintained, will also provoke “lawsuits for unconstitutionality that in the medium and long term will determine lower revenue” for the organization.
For his part, the vice president of the University Group, Juan Carlos Canabalrequested that the value of the professional ringtones —in the same line as the institution’s board of directors—, which are currently equivalent to 34% of the Fund’s income.
He also noted concern about the risk posed by the increase in contribution rate from 16.5% to 19%—in some cases, it could even reach 22.5%—due to the possibility that said increase generates “a run” of active members. “The conditions that are generated are not entirely auspicious for some professionals,” she explained, a problem that the president of the Cjppu had already alluded to, Virginia Romero.
For Canabal, in this possible scenario the “crisis” de la Caja, “instead of being as projected by the Executive Branch itself for 2025, it could happen sooner.”
Source: Ambito
