Authorities do not dare to talk about concrete proposals yet, but they think that the Disability, Old Age, Death System (IVM) plan can’t last 100 years.
The system has to adjust to the new demographic and financial conditions that we are living in the country, as a society.
stated Jaime Barrantes, pension manager at the Costa Rican Social Security Fund (CCSS).
According to Barrantes, the options to raise the retirement age, increase the monthy payments or reduce the benefits should be analized within short periods of 20, 30 or 40 years.
He also explained that it was necessary to check it every five years to study the evolution of the economy in order to make gradual adjustments so people can, logically, adapt to this.
Several sectors are waiting for the establishment of negotiating tables to analyze the 1% increase on the workers’ contribution to the IVM, approved by the CCSS Board of Directors on January 12th.
Barrantes recalled that other measures have already been taken to sustain the IVM, such as the elimination of the early pension.
According to Barrantes, the workers’ contributions, the retirement age, the percentage of benefits, the financing quotas and other measures that can be taken to strengthen the IVM will be discussed at the Board of Directors.