Next Thursday the 30th is the deadline for people between 40 and 49 years old to be able to get advice on the Social Security Bank (BPS) regarding the most convenient withdrawal modality for each case, after the approval and implementation of the social security reform in Uruguay. However, 230,000 of the 300,000 people included in this group have not yet used counseling.
People between 40 and 49 years old who chose to divide their social security contributions between the individual savings regime (AFAP) and that of intergenerational solidarity in the B.P.S. —not required but encouraged by the 1996 reform— there are 300,000 throughout the country. The calls “forty-somethings” They must, however, decide how their liabilities will continue: whether they will pass them on in their entirety to the B.P.S. or if, instead, they will remain in a mixed regime —without being able to change decisions over time.
The problem arises from the social security reform approved in May, which eliminates the possibility of revoking the decision of voluntary affiliation to the mixed regime and, in addition, eliminates the bonus – progressively starting in 2033, and completely in 2043—which gave the B.P.S. for workers who had chosen to make use of the option provided by article 8 of Law 16,713.
Faced with this, the Social Security Bank Since August, it has implemented a free advice system so that workers in this situation can learn how the new regulations can affect their lives. future retirements, considering each case in particular.
However, November will also end the deadline to access this consultancy, which they made use of barely 70,000 contributors.
More time to decide
Starting from the fact that there are still 230,000 of the 300,000 between 40 and 49 years old who opted for the mixed system between AFAP and B.P.S. who have not yet made use of the corresponding advice, the worker representative on the BPS board, Ramon Ruiz, promoted a bill in order to grant a longer term —until July 1, 2025— to schedule and request advice.
For Ruiz, the reform “changed the rule of the game for people under 50 years of age,” a scenario in which the creation of the Social Security Trust II —a bill entered into the Parliament in October.
“The complexity of the issue, added to the changes introduced in such a short time, justify granting a longer period to citizens so that they can schedule themselves, in order to request the advice required, to make a decision. Added to this is that, when choosing the individual savings, “It was done on the basis that there was the possibility of revoking said option, a right that today the legislation has suppressed,” argued the director of the B.P.S. in the document.
For his part, the B.P.S. reported in recent days that those people who opted for the mixed regime “may cancel this option by application of article 2 of Law 19,162 (law of the individual retirement savings regime).” The conditions to do so are to be between 40 and 49 years of age and to have opted for the mixed regime without being obliged to do so.
Source: Ambito
