In the midst of the debate for retirement assets, the opportunity of a deep discussion to reach sustainable solutions opens over time.
In March there is a New expiration of the deadline to access the pension moratoriumwhich highlights the structural problems of the system. This situation represents a new challenge for those of us who are part of the Congress, since it forces us to make a crucial decision: or we continue to extend an incomplete solution that perpetuates the crisis, or we take the step towards a Comprehensive reform that solves the underlying problems and provides fair coverage to retired workers.
Both sanctioning a new extension and passing with passivity its expiration are bad decisions. The first option would imply continuing to extend the crisis, deepening the financial imbalances that are covered, unfairly, punishing the salaries of those who contributed during their active life. The second option, which consists of not renewing it, although eliminating the opportunism that has been prevailing for more than a decade, would continue without responding to the Urgent need to establish a better organization of the pension system.
Therefore together with the Deputy Alejandra Torresunderstanding that without underestimating the complexity of the problems that underlie the crisis of the pension system it is possible to establish a milestone from which we begin to reverse the crisis and End decades of opportunistic and irresponsible pension policieswe present a bill that tries to retrace that path.
Although we recognize that comprehensive system reform is necessary, we also understand that the conditions to be carried out immediately are not given. Therefore, this project is divided into two major chapters. The first contemplates a set of urgent and punctual reformswhile the second establishes the first steps towards a work process that allows, within a relatively short period, that the Congress sanctions a comprehensive reform.
In relation to the urgent and punctual reforms, the most relevant changes that are proposed are the following:
- Eliminate the 30 -year requirement of contributions: This requirement was designed for a mixed system that combined a distribution regime with another capitalization, where the first demanded at least 30 years of contributions, while the second did not, since the amount of retirement depended exclusively on the contributions made. However, when the capitalization regime was repealed in 2008, the 30 -year contribution requirement was not reviewed. This omission resulted in a general regime with an extremely rigid and arbitrary access rule, since partial contributions, which do not add 30 years, have no value. Eliminating this requirement, all those who meet the minimum age to retire will be entitled to pension coverage, and any contribution period will be recognized with a better have. The objective is to more flexible the access requirements to the retirement benefit, giving value to partial contributions.
- Compute all the remuneration of working life of the person, instead of the last 10 years. This measure seeks to guarantee more fair and equitable treatment, recognizing the contributory effort of people throughout their working life.
- Improve the universal Puam benefit that becomes the guarantee of having minimal. If having resulting from the sum of the benefits (for the years it has contributed) is lower than the PUAM, the beneficiary may opt for the latter. In turn, it is proposed to raise the guarantee of this having linking it to the minimum vital and mobile salary to the date of sanction of the law and then updating by the general rule of mobility. On the other hand, PUAM is perfected by establishing that its amount grows depending on the number of months provided during active life. This responds to reasons of equity and incentive to contributions to the extent that they are always recognized with a better have. Finally, the prohibition of working for those who access the PUAM is repealed, matching their situation with the rest of the retirees, who do not face such restriction.
He Project seeks to order the pension systemencouraging contributory behavior and guaranteeing greater equity in determining assets based on the contributions made. In addition, it establishes The guarantee of a minimum credit (PUAM) For those who do not reach a retirement superior to that figure.
The second chapter establishes the first steps to achieve a Integral planning of the pension system. Following good international practices, a group of experts are entrusted with the elaboration of the necessary studies and the articles for this transcendental transformation. These studies will be based on data and will undergo a transparent review and consultation process, ensuring that the decisions made by Congress are based on precise and objective information.
In 2022, when a new extension to the pension moratoriums presented a project with reforms very similar to those we are proposing now that we were not even treated in commissions was approved almost without discussion. Last year the president signed with the governors the May Pact, which included among his points “A pension reform that gives sustainability to the system, respects those who contributed and allow, who prefer, subscribe to a private retirement system” It’s time to start that discussion.
*Agustín Domingo is a national deputy and former Minister of Economy of Río Negro.
Source: Ambito
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