American Expatriate Costa Rica

Pension reform for the Judiciary

A bill presented by legislators aiming to reform the pension system, would limit pensions for  workers of the Judiciary Branch.

This initiative, presented by 21 Judiciary unions, states that pensions may not exceed 12 basic salaries. The amount may be adjusted when the Judiciary decrees any increase.

Other proposal reforms are:

-Pensions exceeding the limit must pay a 20% to 50% contribution on the excess.
-Pensions will be equal to the last 12 monthly salaries once the person has reached the legal age to retire: 62 years old for men and 60 years old for women. They must have worked at least 30 years.
-Under any circumstances a person may retire before being 55 years old.
-If a public servant is permanently incapacitated, he or she will receive a pension based on service years.
-The spouse of a deceased retiree is entitled to 80% of the pension.

Sandra Piszk, former Work Minister and legislator, said that the proposal is new but they will have to check the retirement age, the compulsory contributions and whether a special tax should be imposed.

crhoy.com