The resources that workers have in their Mandatory Complementary Pension System (ROPC) accounts could not be transferred to the Disability, Old Age and Death Regime (IVM) as these are private funds that are already in individual accounts.
This is private money, which is the fundamental pillar of the market system. An autonomous entity cannot simply expropriate citizens’ money to cover a poorly designed and poorly managed pension system,
declared economist Eli Feinzaig.
The accumulated funds in the ROPC and the Labor Capitalization Fund (FCL) belong to the workers and they are administered by pension providers.
What the CCSS intends to do is a forced expropriation of people’s money. There is no difference between that and that the government can extract money from citizens’ bank accounts to reduce the fiscal deficit,
added the expert.
Feinzaig believes that the IVM is in trouble because of the way it is conceived, since it is a defined benefit-distribution regime, which is financially unfeasible in an environment of lower population growth and greater automation of labor, which means that the number of IVM contributors will not be enough to pay the future pensions.
In addition, former superintendent of pensions Edgar Robles believes that maintaining a single distribution system generates more problems than solutions.
Industrial entrepreneurs are against the transfer of resources from individualized accounts to the IVM.