Exclusive pensions from public institutions have always been a hot topic. There’s some new wording to a bill being discussed currently in Congress related to these systems. The new text was accepted by eight legislators and opposed only by Priscila Vindas Salazar.
Keeping the special funds in place costs ₡58.3 billion a year. The liquidation of the pension funds received by officials of the Costa Rican Social Security Fund (CCSS), Banco Nacional (BN), Costa Rican Institute of Electricity (ICE), Banco de Costa Rica (BCR), and the Costa Rican Institute of Tourism (ICT) would take 35 years!
After 35 years, the last of the special regimes would be closed. All of these systems get high contributions from state entities.
These do not include the pensions for Disability, Old Age and Death (IVM) or Mandatory Complementary Pensions (ROPC). Those cannot be closed out.
The new wording would have the Caja responsible for contributing 1.5% of the total paid in salaries and wages over 35 years, BN would define annual amounts to be paid by the employer and retirees over 25 years, ICE would change from a current 4.5% contribution from the employer and 1% from the employee to only 0.5% by the employer and 4% by the employee. BCR would take 10% from its employees instead of the current 5%. The ICT contributes 5% and the workers can withdraw the amount owed to them in one payment upon retirement.
