Q COSTA RICA — In just 48 hours, Costa Rican President Laura Fernández went from publicly defending the existence of a special pension for former presidents to announcing a bill to eliminate that benefit, an initiative that, she asserted, will also apply to her when her term ends.
This ‘flip-flop’ comes after Fernández defended the continuation of the special pension regime on Monday, August 10, arguing that holding the presidency entails particular conditions that justify former presidents receiving an income after leaving office.
On Monday, the president maintained that the pension constitutes more than just an economic benefit: she presented it as recognition for the characteristics of the office, also pointing out factors such as security and the difficulties a former president might face in re-entering the labor market.
After receiving thousands of negative comments for defending the pensions and possibly seeing her popularity waning, on Wednesday, Fernández announced a completely different position and gave her deputy minister of the presidency, Alejandro Barrantes, a bill called “zero tolerance for ‘pensiones de lujo’ (luxury pensions) for former presidents,” with instructions to present it to the Legislative Assembly that same day.
“Here I am presenting you with the draft bill for zero tolerance of the exorbitant pensions of former presidents of the Republic, all past presidents, including Mr. Rodrigo Chávez, and future presidents, including myself,” the president stated.
This change in position places the special pensions of former presidents (Rafael Angel Calderon, Miguel Angel Rodriguez, Abel Pacheco, Oscar Arias, Laura Chinchilla, Luis Guillermo Solis, Carlos Alvarado and Rodrigo Chaves) back at the center of political debate and, at the same time, opens a discussion about the evolution of the government’s discourse regarding this system.
From defending the benefit to pushing for its elimination
“The office of President has a series of prerogatives distinct from many other public offices, and that is why a pension for former presidents is recognized worldwide,” Fernández had stated.
Fernández also explained at the time that the benefit would allow former presidents to maintain a sustainable standard of living after leaving office, citing security and the difficulties of re-entering the workforce as reasons.
The statement came after the Legislative Assembly’s Social Affairs Committee rejected a report related to a bill that aims to eliminate pensions for former presidents.
In that vote, pro-government legislators spoke out against the report, sending the bill to the full Legislative Assembly with a majority negative opinion.
Now, with the new bill announced by the president herself, the issue has shifted again.
One of the central elements of the presidential announcement was the decision to include Fernández herself within the potential scope of the reform.
Fernández assured that the project does not intend to eliminate the benefit only for certain former presidents, but to establish a rule that applies to those who have held and will hold the Presidency in the future.
“Because what’s good for the goose is good for the gander,” the president said amid applause during Wednesday’s press conference.
The reference is especially relevant because both President Laura Fernández and former president and current Minister of the Presidency and Minister of Finance, Rodrigo Chaves, could eventually access a former president’s pension if the conditions currently stipulated by the legislation remain in place.
The benefit is currently around ¢4 million colones per month, equivalent to approximately US$8,700 at today’s dollar exchange.
Currently, seven of the eight former presidents entitled to this pension receive it, while Carlos Alvarado voluntarily renounced the benefit
Under Costa Rican law, a former president cannot legally renounce the right to receive their lifetime presidential pension because the benefit is classified as an irrenounceable labor right. However, a former president can choose not to keep the money personally.
While the state is legally mandated to disburse the pension, a former president can direct the Ministry of Labor’s Directorate of Pensions to deposit the funds into an account belonging to a third party, a charity, or an organization of their choice.
Fernández’s flip-flop adds a new chapter to a discussion that for years has pitted two arguments against each other: on one side, those who consider the pension a recognition of the particularities, responsibilities, and risks of serving as President; on the other, those who question the State’s continued provision of special benefits for those who have already held the office.
What happens now?
The ball is now in the Legislative Assembly’s court.
The bill must now begin its legislative process to eliminate presidential pensions by repealing or amending Ley N° 313 (1939) and Ley N° 7302 (1992), which currently govern these lifetime benefits. Because presidential pensions are established by ordinary statutory laws rather than the Constitution, a constitutional reform is not required.
Its eventual approval will determine whether Costa Rica definitively modifies the special regime that allows former presidents to receive a differentiated pension after leaving office.