The deputies to Congress approved this Tuesday, September 10, thethe reforms to the Law of Civil Passive Classes of the Statewhich will increase the monthly pensions of retirees from state entities by Q1,000 to the amounts they currently receive.
The reform also contemplates that no retiree receives less than a minimum wage for non-agricultural activities, of Q3 thousand 384.59, but that does not exceed Q7 thousand per monthThe increase will take effect next year, as approved by lawmakers.
Currently, pensioners receive between Q774 and Q5 thousand per month.
Analysis
Table of Contents
Table of Contents
Since February of this year, the Legislative Labor Commission was in charge of analyzing the proposed reforms, and after several months they presented a series of amendments in consensus with the blocs.
The initial proposal for the reform included a percentage increase in contributions from active state workers; however, in yesterday’s session an amendment was approved to remove that article, meaning that public servants will continue to receive the same percentages of contributions.
It was also agreed that Every four years, a review of the amount of pensions must be carried out..
At the beginning of the session, the deputies elected by the Semilla Movement tried to exclude the reform from the agenda of the day, arguing that the Ministry of Finance had not issued an opinion on the application of this increase contemplated in the reform proposal, so an estimate of the economic impact of the regulation had to be made.
The proposal was presented by the deputy Andrea Villagrán, who was questioned by several congressmen from the opposition blocs and some from the so-called “official alliance”, as to whether the government-linked benches were merely “excuses”.
“There is money to seek adjustments, we cannot say that there are no resources,” said Deputy Sonia Gutiérrez, who chairs the Labor Commission and was in charge of discussing the proposal, pointing out that in her opinion there is a debt owed to retirees for decades.
Meanwhile, the head of the Valor bench, Elmer Palencia, also questioned the issue of the Executive’s funds to cover the increase, since two weeks ago the budgetary extension of Q14,151 million was approved, in which resources were allocated for the passive classes of the State.
“What is the intention of delaying? Where are the campaign promises? Or were they just promises?” Palencia asked the elected representatives of the Semilla Movement.
“There are some technical difficulties that the Executive will have to see how to resolve, related to the base of active classes, which does not compensate for the passive classes. We will have to see how to compensate for this situation in terms of financing for this project,” said independent deputy Andrea Reyes.
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#Q1000 #increase #approved #state #retirees
Pension plan traduction
Retiree Pension Reform: A Step Towards a Livable Income
In a landmark move, the deputies to Congress have approved reforms to the Law of Civil Passive Classes of the State, which will significantly impact the lives of retirees from state entities. The reform will increase their monthly pensions by Q1,000, ensuring that no retiree receives less than the minimum wage for non-agricultural activities, currently set at Q3,384.59. Additionally, the pensions will be capped at Q7,000 per month. This increase is set to take effect next year, as approved by lawmakers.
Currently, pensioners receive between Q774 and Q5,000 per month. This reform aims to provide a more livable income for retirees, acknowledging the debt owed to them for decades. The reform also includes a review of pension amounts every four years, ensuring that retirees receive a fair and sustainable income.
Inflation’s Impact on Pensions
The importance of this reform cannot be overstated, especially considering the impact of inflation on pension income. As reported by CNBC, inflation is taking a big bite out of retirees’ pension income, with state and local government pensions typically offering adjustments of up to 2% or 3% per year [[1]]. In the private sector, employers that still provide pensions are also struggling to keep pace with inflation. This highlights the need for regular reviews and adjustments to ensure that retirees can maintain a decent standard of living.
Comparing Pension Adjustments
In the United States, for example, Social Security and Supplemental Security Income (SSI) benefits are adjusted annually based on the Consumer Price Index (CPI). According to the Social Security Administration, benefits will increase by 3.2% in 2024 [[3]]. Similarly, in Delaware, the state government has implemented a one-time salary supplement of $500.00 for pensioners who retired prior to July 1, 2021 [[2]].
The Way Forward
While the reform is a significant step towards providing a livable income for retirees, there are still technical difficulties to be addressed. The Executive will need to find ways to compensate for the base of active classes, which does not currently compensate for the passive classes. As Deputy Sonia Gutiérrez pointed out, ”There is money to seek adjustments, we cannot say that there are no resources.”
the reform to the Law of Civil Passive Classes of the State is a crucial step towards ensuring that retirees receive a fair and sustainable income. Regular reviews and adjustments will be essential to keeping pace with inflation and providing a decent standard of living for retirees.
Retiree Pension Reform: A Step Towards a Livable Income
In a landmark move, the deputies to Congress have approved reforms to the Law of Civil Passive Classes of the State, which will significantly impact the lives of retirees from state entities. The reform will increase their monthly pensions by Q1,000, ensuring that no retiree receives less than