The State would settle its debt with the Costa Rican Social Security Fund (CCSS) as of 2019. The amount is owed for the increase the CCSS made to the contribution of the State for workers’ contributions, 0.66% for the Disability, Old-Age and Death (IVM) regime.
Jaime Barrantes, manager of Pensions, explained that they have already had two meetings with the new authorities of the Ministry of Finance to define the conditions in which they will make the payment.
Barrantes also highlighted the participation of Rocío Aguilar, Minister of Finance, in the Legislative Assembly, where she spoke on various tax issues, including this one.
Although she said that resources are not going to be included in this budget year, there is a provision for them to be included as of 2019. This is a positive sign since the Ministry of Finance is going to recognize this important transfer of resources that the IVM needs to finance the difference between the amount of the pensions and the minimum pension,”
said Barrantes.
The Board of Directors of the CCSS agreed to increase the employer’s contribution paid by the State, to cover the deficit in the contribution by workers. Despite the contribution of employees, they do not reach the amount necessary to obtain the minimum pension. The income of these resources to the IVM coffers would contribute greatly to the financial sustainability of pension insurance.
According to Barrantes, they must analyze the issue together to define the measures. The Pensions for Disability, Old Age, and Death insurance is the largest in the country. Last January, several unions reported that the State’s debt to the CCSS amounted to one trillion colones and that 20 hospitals could be built with this amount.