Tuesday 15 June 2021

Costa Rica Proposes Raising Retirement Age To 70

Photo Marcelo Bertozzi, La Nacion

Q COSTA RICA NEWS – An actuarial analysis prepared  by the School of Mathematics of the University of Costa Rica (UCR), confirms that the Costa Rica Social Security Fund (Caja Costarricense de Seguro Social – CCSS) – commonly referred to as the “Caja” – fund reserve will be depleted in 2030, 10 years ahead of projections, leading to a proposal to push change the retirement age to 70 from the current 65.

The proposal arises from a study to evaluate the financial health of the Disability, Old Age and Death (Invalidez, Vejez y Muerte – IVM) regime.

- Advertisement -

Among the other proposals is to raise the labour-management and state contributions from 9.16% to 26.4% of the worker’s salary. The breakdown of the contributions would be 13.99% from the employer, that of the employee 8.72% and the state, 3.69%, starting in 2019.

The study also proposes that the pension be 40% of the average salary of the worker. At present a retiree get up to 60% of their salary.

The proposed changes would apply only to persons who, as of December 31, 2015, were under the age of 51.

But before these proposals can be applied they must be approved by the Board of Directors of the CCSS.

- Advertisement -

Maria del Rocio Sáenz, executive president of the Caja, said the Board has received the study and it won’t be until next month (January 2017) before discussions will begin. “They (UCR) made some recommendations and presented several scenarios. We have to analyze them to propose some medium and long-term measures,” said Sáenz.

The IVM has 238,644 beneficiaries and some 1.4 million workers contributing, with a reserve fund of ¢2 billion colones.

The UCR report (available online for download at the CCSS website) stresses that, “If no urgent measures are taken, it is estimated that the inflows of contributions and investments will cease to be sufficient to honour the expenses in 2022-2028, so that the reserve would have to be used, which would be exhausted in 2027-2034”.

Click on image to download the report

The Superintendency of Pensions (Supen) alerted, a decade ago, the CCSS to make urgent changes to the IVM.

The concern of a number of CCSS board directors is the all economic, social, political and technical elements and the impact on the population.

- Advertisement -

Source La Nacion

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Should the vaccination against covid-19 be opened?

QCOSTARICA - Six months after the start of vaccination against covid-19,...

Today’s Covid News: A slight drop in new cases and deaths is seen

QCOSTARICA - Faced with wasting a vaccine dose when people in...

MOST READ

Direct flight will connect Guanacaste with Austin starting in November

QCOSTARICA - American Airlines announced that starting November 2, 2021, it will offer a direct flight between Austin, Texas and the Daniel Oduber International...

Planning to travel? You will only be certified as vaccinated if you received doses in Costa Rica

QCOSTARICA - Do you need a certificate of the COVID-19 vaccines applied in Costa Rica?  People who require a certificate that certifies the receipt...

Which countries could follow El Salvador by making it legal tender?

Q24N - El Salvador may be the first country to adopt bitcoin as legal tender, but recent developments suggest that it might not be...

Today’s Vehicle Restriction: June 11, “EVENS”

Today, Friday, June 11, only EVENS can circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save for those under the...

Today’s Vehicle Restriction: June 12, “ODDS”

Today, Saturday, June 12, only ODDS can circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save for those under the...

Today’s Vehicle Restriction June 14: 1 & 2 CANNOT circulate

Today, Monday, June 14, vehicles with plates ending 1 & 2 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

Today’s Covid News: Contagion rate in Costa Rica remains unchanged in the last week

QCOSTARICA - The contagion rate of covid-19 in Costa Rica in the last week did not change, a fact that is seen for the...

El Salvador Makes Bitcoin Legal Tender, A World First

Q24N (Reuters) El Salvador has become the first country in the world to adopt bitcoin as legal tender after Congress approved President Nayib Bukele's...

Should the vaccination against covid-19 be opened?

QCOSTARICA - Six months after the start of vaccination against covid-19, will it be time to open the campaign to those who want to...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.