In the last plenary session of the year, MEPs approved an increase in the minimum pension from $ 207 to $ 304, despite the fact that this is a job to be filled by the Actuarial Committee created in 2017.
The President of the Republic, Nayib Bukele, announced this Sunday evening, through a video in which he summarizes the way the 2021 budget will be divided, that by 2021 a new pension reform will be carried out, which, according to him, would guarantee the increase. from the minimum pension and other taxpayers’ pensions.
“With the new Assembly, we will also remedy the indebtedness that exists to guarantee the increase of the minimum pension and other pensions with a reform of the pension system that will really favor the workers”, the registration indicates.
The last reform of the pension system was carried out in 2017, after more than three years of discussions about the best way to reduce the fiscal deficit that the pension system was generating at that time, due to the high expenditures assumed by the Government.
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With this reform, it was possible to create a joint and several guarantee account which is financed with 5% of the total contribution (15%) and which functions as a common fund for the financing of minimum pensioners’ pensions.
This amendment to the law has also made it possible to create an advance on the pension balance of up to 25% for those who have contributed for at least 10 years.
In the last plenary session of this year and during the 2021 budget amendment, MEPs approved an increase in the minimum pension from $ 207 to $ 304, although this is a job to be filled by the Actuarial Committee that was created as part of pension reforms in 2017.
SEE ALSO: Assembly approves 2021 budget with minimum pension increase to $ 304 per month
This committee was set up to review the minimum pension every three years, to collect information and to assess 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. , reviews every five years the estimates of the life expectancy of the population, reviews and defines the sufficiency and composition of the Solidarity Guarantee Account, as well as analyzes all proposals for the reform of the pension system. However, so far this committee has not been set up. (Edited)