It is necessary to find an alternative exceeding the permanent renewal of the moratoriums. An option would be to eliminate the minimum of 30 years of contributions.
The expiration of the pension moratorium represents an opportunity to eliminate the minimum requirement of 30 years of contributions and improve the universal pension for the elderly (PUAM). This would be a first step towards an integral order of the pension system.
The expiration of the moratorium must be interpreted as An alert signal. This mechanism has been used by those who reach the retirement age without having accumulated the 30 years of required contributions. It consists of simulating years of autonomous work not registered to complete the required years. For that period, a debt is generated for the uncompared contributions, which is canceled by means of a discounted payment plan of the pension credit.
It is estimated that two thirds of those who reach the retirement age resort to this regime. According to data from the Undersecretariat of Social Security By 2024, 52% of people have less than 10 years of contributions; 30%, between 10 and 25 years; and only 18% brings together between 25 and 30 years.
There is a wide dispersion in the density of contributions between those who reach the age of retirement. If the moratoriums are not renewed, Many people must postpone their retirement or resort to PUAM. This non -contributory benefit presents two important deficiencies: It does not recognize contributions below 30 years – that is, a person without contributions and another with 29 years receive the same benefit – and does not allow to continue working, unlike contributory retirement.
How to move towards an integral planning of the pension system
The demand of the 30 years of contributions comes from the old mixed pension system (distribution and capitalization). In the distribution regime, said minimum was required, while a minimum amount of contributions was not required in capitalization. When the capitalization regime was eliminated, this rule was not reviewed, and the minimum of 30 years remained for all benefits. This barrier generated exclusionwhich led to extending the use of moratoriums, deepening the financial crisis of the system and consolidating the injustice of granting tax retirements without effective contributions.
It is necessary to find an alternative exceeding the permanent renewal of the moratoriums. An option would be to eliminate the minimum of 30 years of contributions. For those who register few contributions, PUAM could be established as a floor, with an amount that progressively increases according to the amount of accumulated contributions. In addition, beneficiaries should continue working.
Although this would be a relevant improvement, The truly important thing is to move towards an integral order of the pension system. For this, it is essential to review the special and differential regimes, address high litigation, review the double coverage generated by derived pensions and establish automatic adjustment mechanisms that allow adapting the system to demographic changes.
PRofesor from the University of CEMA
Source: Ambito
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