In the last plenary of the year, deputies approved that the minimum pension be increased from $ 207 to $ 304, although this is a job to be done by the Actuarial Committee that was created in 2017.
The President of the Republic, Nayib Bukele, advanced this Sunday night, through a video in which he summarizes how the 2021 budget will be divided, which for 2021 will also be a new pension reform that according to him, would guarantee an increase in the minimum pension and other contributors’ pensions.
“With the new Assembly we will also fix the existing debt to ensure the increase of the minimum pension and other pensions with a reform of the pension system that truly benefits workers,” the recording notes.
The last pension reform was made in 2017, after more than three years of discussion on the best way to reduce the fiscal deficit that the pension system was generating at the time, due to the high spending incurred by the Government.
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With this reform, it was possible to create a Solidarity Guarantee account that is financed with 5% of the total contribution (15%) and works as a common fund to finance the minimum pensions of retirees.
This change in law also allowed the creation of the Pension Balance Advance of up to 25% for those who had contributed for at least 10 years.
In the last plenary of this year and during the modification of the 2021 budget the deputies approved to increase from $ 207 to $ 304 the minimum pension although this is a work that must carry out the Actuarial Committee that was created as part of the 2017 pension reforms.
SEE ALSO: Assembly approves 2021 budget with minimum pension increase to $ 304 monthly
This committee was created to review the minimum pension every three years, collect information and assess the impact of changes in life expectancy and labor market conditions on the outcome of the Pension System, including the cost of benefits. longevity through actuarial studies, reviewing the estimates of life expectancy of the population every five years, reviewing and defining the sufficiency and composition of the Solidarity Guarantee Account, as well as analyzing all proposals for reform of the Pension System. However, to date this committee has not been established. (Edited)