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The Professionals Fund awaits the definition of the new government to solve its deficit

The Professionals Fund awaits the definition of the new government to solve its deficit

The Chamber of Deputies approved the bill that seeks to provide facilities to debtors of the Retirement and Pension Fund for University Professionals (Cjppu) of Uruguay, but the institution’s board of directors is already working on new alternatives to address the critical financial situation, facing the post-electoral period and transition to a new government.

The Constitution makes it clear: any modification in budgetary matters and, therefore, also in matters related to the social Security They can be carried out up to one year before the presidential elections. Therefore, in order to be able to face new proposals for the Professionals Fund, we must wait for Uruguay Choose who will be your next president, either in October or November, after an eventual second round.

In this regard, the president of the Cjppu, Daniel Alza, explained to Radio Carve that the board is waiting for the elections to pass to reconsider the search for a solution for the financial crisis that crosses the institution and the projected scenario of a deficit of up to 100 million dollars annually in the next five years. This, it should be remembered, after the bill did not prosper in Parliament last year.

“What this board could do, it has already done,” said Alza, recalling that the current leadership joined in December 2021 and that in February 2022 it took “the first corrective measures aimed at alleviating the situation that the institute has regarding his financial balance.” “We have been making corrections, we have been working on the management, but we aspire to present the elections immediately, with the party that is ours, in short, and to start working to find other types of solutions for the situation of the institute,” he added.

“We have to keep looking alternatives and present different alternatives, or continue insisting on some that are the ones that we understand can make the institute viable,” said Alza.

In October of last year, the reform project of the Professionals Fund failed to advance in the Parliament in time to meet constitutional deadlines, and its rescue was suspended until at least the end of this year.

Deputies approved the project that targets defaulters

Meanwhile, this week the Chamber of Deputies practically unanimously approved the bill to address the high levels of late payment that the Cjppu has, which was sent to Parliament by the Power Executive as a possible measure to momentarily alleviate the crisis in the institution.

The approved text establishes 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%.

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, may choose to rely on one of the different “special regimes of obligation update” that the project postulates; among them, payment in installments or cash payment with particular benefits.

“It is the opportunity to catch up and re-engage, contributing to your retirement, having social security and support at the institute. It is a management tool for the fund that allows us to work and get in touch with this group and see what is the best way to catch up, taking into account their personal situation,” Alza highlighted in this regard. Likewise, he pointed out that “it is important for the person to go to the cashier, see how their debt was created and see how they can solve it, since all cases are different.”

Source: Ambito

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