He Executive power sent to Parliament a bill to address the high levels of delinquencies that the Retirement and Pension Fund for University Professionals (Cjppu) of Uruguay, in a new measure focused on this problem that affects the solvency and sustainability of the pension institution. The news payment facilitiesthe central point of the initiative.
The late payment of contributions to the Cjppu is under the scrutiny of the authorities as one of the main reasons behind the difficult economic situation that the institution is going through and that – unlike what did happen with the Bank Cash— could not be addressed legislatively before the legal deadline established by the Constitution to make budget modifications.
Faced with this, the Executive sent a project that has the approval of the Professional Box and which presents as a possibility to achieve greater resources for the same; something that would help sustain income for the benefits corresponding.
What is the project?
The government considered it “timely and convenient” to establish a special regime strut for updating obligations, more beneficial than the regime of the Tributary Code applicable to the Fund, through the variation of the Average Nominal Wage Index (IMSN) and the increase with an annual effective interest rate of 4%. This is what the bill in question mainly proposes.
From this new structure, those who have debts with the Cjppu —of contributions, refunds, administration expenses, fines or other concepts related to professional activity— until the month prior to the entry into force of the eventual law, they may choose to rely on “one of the following special regimes of obligation update”.
The first of these special regimes establishes that “within a period of one year from the aforementioned date, they may enter into a facility agreement including in it the debt generated up to the month of its subscription. The obligations will be updated by the variation in the Average Nominal Wage Index (IMSN) and will increase with an annual effective interest rate of 4%.”
Likewise, “the amounts owed that are determined in accordance with the procedure described above may be paid in cash or by agreed payment in a maximum of 120 monthly installments, with an interest rate for financing of 4% effective annually. The agreement fees will be readjusted semiannually in January and July by the IMSN,” he adds.
The other option is that “within a period of up to 180 days from the entry into force of this law, they may cancel their obligations in a single payment, updated by the variation of the IMSN and increased with an effective annual interest rate according to ” age and seniority of the debt.
In this way, for those with up to 50 years and a debt age of up to five years, the interest rate will be 1%, if the debt is between five and 10 years old the rate will be 1.5% and if it has More than 10 years the interest rate to be applied will be 2%.
For those over 50 and up to 60 years old, the interest rates to apply are 1.5%, 2% and 2.5%. And for those over 60, the rates will be 2%, 2.5% and 3%.
“For members who are covered by the regime provided for in this section, a waiting period of three years will be applied to access the common or normal retirement paid by the Fund, after the cancellation of the entire debt. included in it,” adds the project.
Furthermore, the text that must be analyzed and voted on in Parliament provides for the possibility for delinquent affiliates to make the category option for all purposes only once; as well as the alternative of an increase in the contribution rate, to all members within a period of 90 days from the validity of said increase.
Source: Ambito
