Conep lies and pensions

Once again Conep together with the newspaper La Prensaspokesman for petty interests financial oligarchyThey are trying to confuse the public. Its purpose is nothing more than to promote a pension system based on individual accounts, ensuring the management of all the funds associated with them. It is about practicing the method of Joseph Goebbels, Hitler’s infamous minister of propaganda, which is based on the constant repetition of lies, in order to give them the appearance of truth.

On page 7B of the newspaper, the press states that the return of solidarity implies the expropriation of the so-called individual accounts of those who are in the so-called mixed system. This is a false claim for several reasons. First, as is clear from Article 198 of the HSS Organic Law, these accounts only give rise to the expectation of receiving a pension. In this sense, it is clear that it is legal to change the pension system, so that it is fully supportive. As stated in Article 4 of the Civil Code: “Mere expectations do not constitute a right against a new law which abrogates or limits them.”

It is precisely on that basis Conep and the current government introduced Law 51 of December 27, 2005which, breaking the internal chain of intergenerational solidarity, left the solidarity model of Mr pensions (SEBD), directly affecting on more than 863,000 insured persons in retirement or about to retire.

It is interesting to note that hemp, without citing a single source, claims that there are 700,000 contributors with individual accounts, who would practically be without pensions if the system were to be unified in a solidarity model. This is a statement based on another lie, because the proposal of the social sectors is not to leave these people without pensions.

On the contrary, it seeks to return to the solidarity system and give it a sound financial basis to ensure its sustainability over time. In reality, these sectors have presented concrete measures to achieve this financing. To have a fairly complete and quantified idea about them, anyone can resort The third section document approved by General Council of the University of Panama published under the title “Social Security System and Pension System in Panama: Crisis and Social Alternatives”.

Just for the sake of example, without trying to present them all, two important measures can be highlighted to begin with. First, the evasion of social security contributions, which already affected 227,671 employees in 2019, is eliminated. This would increase the number of associates by 27.5%, significantly increasing revenues IVM program.

The presence of the so-called avoidance, which happens, for example, when important companies mask wages under the concept of daily wages in order not to pay quotas social security.

Second, that there is greater social equality that prevents wage deterioration. Let’s just go back to participating in salaries in GDP observed in 2007 and elimination of evasion, Program IVM revenue would increase by slightly more than B/2,200.0 million per year. In addition, only if the government eliminates tax evasion by two percentage points to devote to pensions, another B/. 1,300.0 million.

It is very important to point out that, difference from what Conep proclaimsrestoring beneficiary solidarity for the youngest contributors, avoiding them to suffer from miserable pensions (close to 20% of last salaries, according to IMF study published in 2005). It’s time to expose Conep’s new attempt.