To increase the retirement age and to reduce the pension benefits are not the only alternatives the could solve the possible crisis of the Disability, Old Age and Death Regime (IVM).
Among the options that are under discussion, there are individual capitalization (such as the ROPC) or notional accounts. There are also people who propose that the contributions of the individualized regimes go to the IVM in the future.
Economist Eli Feinzaig supports the idea of start using an individual capitalization system, where workers and employers’ contributions go to individual accounts onthe name of the worker.
Such a scheme would have individually-defined contributions, and members would be free to choose the entity that administers their savings, and how they will receive the benefits once they have met the requirements for retirement, something similar to what is done with the Mandatory Regime Complementary Pension (ROPC).
In this system companies will continue making the employer’s contribution. Thus, the contributions would go to the worker’s own pension, and not to a common fund where the money disappears.
The notional accounts is another proposal that could save the IVM.
It is a scheme in which workers contribute throughout a working life to a notional account and their pension is calculated based on what has been contributed over those years.
Economist Edgar Robles, former superintendent of Pensions, supports this alternative. In addition, it visualizes an independent institution that administers pensions.
However, the economist stressed that this proposal would require a change in the Constitution and a transition period between systems for those who have already contributed to other regimes.
It would also have a fiscal cost, as the state must keep the benefits after the reform.
In his opinion is the cheapest options.
Feinzaig said that raising the retirement age and reducing pensions are measures that can prolong IVM life, but they are not a permanent solution.