In the last plenary session of the year, the deputies agreed to increase the minimum pension from $ 207 to $ 304, despite this being a task to be performed by the Actuarial Committee created in 2017.
The President of the Republic, Nayib Bukele, announced this Sunday evening, via a video summarizing how the budget for 2021 will be divided, that there will also be a new pension reform by 2021 that he believes would guarantee the increase. of the minimum pension and the pensions of other contributors.
“With the new Assembly, we will also restore the indebtedness that exists to guarantee an increase in the minimum and other pensions with a reform of the pension system that really benefits workers,” the registry said.
The last pension system reform took place in 2017, after more than three years of discussion on how best to reduce the budget deficit that the pension system was causing at the time due to the high government spending.
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With this reform it was possible to create a solidarity guarantee account that is funded with 5% of the total contribution (15%) and which works as a common fund to finance the minimum pensions of retirees.
This amendment also made it possible to create an advance on the pension balance of up to 25% for those who contributed for at least 10 years.
At this year’s last plenary session and during the budget change for 2021, delegates agreed to increase the minimum pension from $ 207 to $ 304, although this is a task to be performed by the Actuarial Committee established as part of the pension reforms of 2017.
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This committee was established to review the minimum pension every three years, to collect information and to evaluate the impact of changes in life expectancy and labor market conditions on the outcome of the pension system, including the cost of longevity benefits through actuarial studies. , review the estimates of life expectancy of the population every five years, review and define the adequacy and composition of the solidarity guarantee account, and analyze all reform proposals for the pension system. However, this committee has not yet been established. (edited)