The social security institute needed US$490.8M in financial assistance. Retirement and pension payments grew by 9%.
He Social Security Bank (BPS) published his Financial balance of 2023, which again recorded operating losses, with a negative net result of 12,364 million pesos. Although the variation was reduced by 6% compared to 2022, the social security institute of Uruguay should have received financial assistance of General Revenues for 490.8 million dollars.
2023 was not the first year in which the B.P.S. ended in the red—hence the urgency and agreed need for a reform of the social security system—but they are the most recent data on the matter. In that sense, the pension institute ended last year’s exercise with a negative result of 12,364 million pesos, equivalent to 326.3 million dollars, according to the current exchange rate.
This, after 6,720.5 million dollars were paid in compensation retirements and pensions, 9% more than the previous year; and receiving 490.8 million dollars—18,598 million pesos—of financial assistance from General Revenue, which also included transfers from the Ministry of Economy and Finance (MEF). The contribution was 8.7% greater than what was granted during 2022, with a total of 38.4 million dollars more than in the previous year.
Although the negative balance presents an improvement of 6% compared to 2022, the consulting firm Crowe —in charge of the audit of the organization— pointed out that the B.P.S. presents a significant operating deficit in recent financial years.
Expenses, collection, benefits and debts
He B.P.S. had an increase of 9% in expenses for disability, old-age and survival benefits, after paying a total of 6,720.5 million dollars for them. The main items that represented an outflow of money for the organization were retirements, with 4.95 billion dollars; survivor pensions, with 1,313 million dollars; and old-age and disability pensions, with 398.5 million dollars.
Specifically in retirements, The increase was 9.3% year-on-year.
Regarding the income and expenses that the social security institute had, the report indicates that the organizational chart In current terms they grew by 9.71%, while the expenses they increased by 9.07%. The slightly positive difference was mainly due to a increase in collection of the organization —which was 88,265 million pesos in constant prices for industry and commerce (+2.45%), 5,916 million pesos in rural (+1.43%) and 2,508 million for domestic service (-1% ).
On the other hand, the administration expenses they rose 7.4%; the bad credits, 17.8%; the results for investments in associates, 123.51%; and the results for investment in subsidiaries10.6%.
Source: Ambito
