2024-11-17 03:49:00
In light of the public debate over the status of retirees, the Center for Public Policy Implementation for Equity and Growth (CIPPEC) It is proposed to reorganize the pension system based on the reformulation of special systems. They have the special benefit of producing inequalities and imbalances.
CIPPEC focuses on some 200 special systems absorb 40% of the pension benefits provided by Argentina, A much higher percentage than any international comparison. Wages in these programs are on average 65% higher than those in the general system.
these systems They also represent significant public spending, with demand approaching 5% of GDP by 2023.
Raphael Roffman is one of the initiators of the project.
Q: Will changes in these characteristics have political and social consequences?
RF: Of course, this is understandable because the political and social context must be taken into account. May need to be phased in, with deadlines and goals set But just because it’s complicated, it doesn’t have to be done, or even partially done. It is important that any measures form part of the strategy. If we want a unified model, but the approach is 10 first and 20 later because that makes more sense, it can be part of the strategy; but it has to be done.
Q: How can the proposed unification be implemented without affecting established rights?
RF: Acquired rights will be reserved to those who are already beneficiaries. No vested rights are expected to exist if r changesUnder the system, new retirees will do so according to established conditions. However, it is It is logical that any reform must address the condition of the population. You can’t tell someone who is retiring tomorrow that they will be retiring in five years. Consideration must be given to establishing a gradualist system for solving social problems.
Q: To give a concrete example, is a policeman, a mechanic or an oilman the same person to the regime?
RF: One of the principles we follow is that benefits must be determined by the resources people receive and contribute, not the activities. anyway,Differences between jobs must occur during the active period and should not affect retirement. Whoever contributes more will benefit more.
Q: What is the biggest special system?
RF: Those involved The largest resources are provincial resources, teacher resources and non-contributory pensions Due to disability. There are other important factors, such as the retirement of military and police personnel, as well as private projects such as miners and workers in certain transportation sectors.
Q: Let me give you an example of a graphic worker.
RF: This is a department that explains the situation. dOver the years, due to health conditions, the figure had a special regime. This is a bad idea because some people are exposed and some are not because they work in other fields, some work in more modern factories or those who work with lead are not exposed and others People are greatly affected and they are retiring earlier within 5 to 10 years. This doesn’t make sense. Those affected would ideally be entitled to a disability pension as this is not a collective issue but an individual one.
Q: Should the retirement age be the same for women and men?
RF: Yes, women face gender-specific issues due to care work, raising children, etc. These problems cannot be solved if they retire five years early. dThe problems they face in active life should be addressed with better policies Public or labor legislation, but not retirement age.
Q: How are provincial funds managed?
RF: Provincial savings banks exist because of the provisions of the country’s constitution. If the province wants it, it must maintain it. But thinking about it from a public policy perspective, it’s hard to understand what the advantages are of provincial funding rather than a national system. It is logical and reasonable for education or health to be administered by the provinces due to their proximity, but for social security to be administered by the provinces it is difficult to justify in conceptual and technical terms. This is absolutely legal. Most are deficient, and those that are not are due to employers (i.e. the provinces and states themselves) paying higher contributions. For some provinces this is a serious problem, although this is not the case in well-governed provinces like Córdoba.
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What are the main challenges in reforming Argentina’s pension system as highlighted by Raphael Roffman?
**Interview with Raphael Roffman on Pension System Reform**
**Editor:** Today, we have Raphael Roffman from the Center for Public Policy Implementation for Equity and Growth (CIPPEC) to discuss the proposed reforms to Argentina’s pension system. Thank you for joining us, Raphael.
**Roffman:** Thank you for having me.
**Editor:** Let’s dive into the proposed overhaul. You’ve highlighted that around 200 special pension systems currently absorb 40% of the pension benefits in Argentina. Can you explain why this is a concern?
**Roffman:** Yes, that’s a significant point. These special systems produce substantial inequalities and imbalances within the pension framework. The average wages for those in these systems are about 65% higher than in the general system. This not only creates disparity among retirees but also results in unsustainable public spending, nearing 5% of GDP.
**Editor:** In light of the complexities surrounding such changes, do you foresee political and social repercussions?
**Roffman:** Absolutely, it’s a sensitive issue. Any reform must be considerate of the political and social context. We could implement these changes gradually, setting clear timelines and goals. Just because it’s complicated doesn’t mean it shouldn’t be done—partial measures can be part of a broader strategy.
**Editor:** How can you ensure that established rights for current beneficiaries are not affected by these reforms?
**Roffman:** That’s crucial. Acquired rights will be preserved for current retirees. Any new regulations will apply to those who retire under the new system. We must also manage expectations realistically; individuals close to retirement shouldn’t face abrupt changes.
**Editor:** How do you plan to address disparities among different occupations in the pension system?
**Roffman:** It’s important that benefits are linked to contributions rather than job types. Differences in work exposure should not dictate retirement conditions. Everyone who contributes should benefit accordingly, regardless of their profession.
**Editor:** Could you elaborate on which special systems have the most significant impact?
**Roffman:** The largest burdens come from provincial resources, teachers, and non-contributory pensions for disabilities, along with the pensions for military and police personnel. These systems contribute heavily to the overall spending.
**Editor:** do you believe that the retirement age should be standardized across different professions?
**Roffman:** That’s a complex issue. Ideally, retirement conditions should be equitable and based on contributions rather than job types. We must ensure that individuals retiring earlier due to job-related health issues can access proper disability pensions rather than relying on a blanket special regime.
**Editor:** Thank you for your insights, Raphael. It sounds like there’s a long road ahead for pension reform in Argentina.
**Roffman:** Thank you for shedding light on this important topic.
**Editor:** We appreciate your time and expertise.
