The Chamber of Deputies unanimously voted for the project that seeks to reform the retirement and pensions of the Bank Cashwill go to Senate awaiting final approval; Meanwhile, the discussion on the Professionals Fund is still continuing.
The reform was sent to Parliament for him Executive power at the end of September, after reaching an agreement between the banking institutions, the bank employees union and the government. Specifically, the project entered the Deputies on the 18th of this month as “serious and urgent” and will then go to the Senate for final vote.
What does the rescue of the Caja Bancaria propose?
As had already been advanced in different instances, the project agreed upon between the government, the banks and the union implies the contribution in equal parts of all the protagonists. That is, what was called a joint exit.
On the one hand, the proposal implies a change in conditions for retirement —the retirement age will be progressively raised to 65 years and a “pecuniary benefit of 4%” will be applied—, as well as a contribution from retirees under the 2008 law; On the other hand, an increase in the Employer Complementary Benefit (PCP) that the banks pay for each worker and a “temporary additional contribution”; and finally a debt issue with state guarantee for up to 400 million dollars—issuance of a bond for a maximum total amount of 2,625 million Indexed Units (UI) through public debt securities or through loans with multilateral organizations.
In the explanatory statement, the Executive Branch warned that the operating deficit of the fund will lead to its financial reserves being depleted this year, and the situation of Red numbers It will extend “for more than a decade.”
“Between the last months of 2023 and the year 2035, the projection used as a reference for the design of the measures indicates a accumulated deficit which, taken to dollars of the year 2023, is located in 994 million dollars. The pace of the deficit in the first years is more intense. In particular, between 2024 and 2030, more than 100 million dollars per year are necessary to be able to meet the obligations of the fund,” maintains the argument presented by the government.
The direct contribution of the banks during the first years, as well as the contribution of liabilities retired by the 2008 law, finds reasons why the proposed parameter adjustment measures would have a late financial impact. According to the Executive Branch, estimates indicate that the debt contemplated It can be canceled between 2040 and 2043.
The project by the Professionals Fund is still under discussion
Meanwhile, the initiative to reform the Professional Box remains under discussion. The deputy for Frente Amplio, Gabriel Oteroannounced that the ruling party is in “full discussion and seeking agreements” within Parliament.
The project of the Retirement and Pension Fund for University Professionals (Cjppu) proposes financial assistance for the institution, such as the creation of a contribution made by retirees and pensioners in favor of the Fund; as well as an increase in the asset contribution rate from 16.5% to 19% of the fictitious salary of the corresponding category.
Meanwhile, those who declare non-exercise must pay as administration and inspection expenses an amount established by regulation, the maximum of which may not exceed the second category fictitious salary according to the current scale, about 51,761 pesos; and fifth category according to the new proposed scale, about 56,641 pesos.
The text also indicates that the Professional Box may request information from Social Security Bank (BPS), at General Tax Directorate (DGI) and other public organizations on their affiliates and contributing companies, without having to have the prior consent of the data owners to do so.
Finally, the rescue project for the Cjppu proposes that the calculation of retirements be obtained from the monthly average of the fictitious salaries corresponding to the last 18 years of activity, and no longer the previous three years.
Source: Ambito
