The Cabinet Council approved Bill No. 07-25, which involves the transfer of extraordinary funds to the Social Security Fund (CSS) to cover the deficit of the Disability, Old Age, and Death (IVM) Program and ensure the payment of pensions in February. According to official estimates, the IVM Program deficit is expected to reach 615 million dollars by the end of 2025, raising concerns about the financial sustainability of the pension system.
Health Minister Fernando Boyd explained that the approved transfer amounts to 91 million 620 thousand 25 dollars, coming from various state dependencies and in line with the current budget for 2025. This measure was considered necessary due to the lack of approval of reforms to the Organic Law of the CSS, which would prevent covering the benefits of the defined benefit program.
Boyd emphasized the urgency of a structural reform to the CSS to prevent this situation from recurring in the coming months, as the amount to be transferred will increase monthly. The approved bill will be presented to the National Assembly, where its rapid approval is expected to ensure timely payments to retirees.
In Minister Boyd's words: “Therefore, I am heading to the National Assembly right now to approve the transfer of financial resources.” It was emphasized that the only way to avoid these monthly procedures and ensure the financial stability of the pension system is through the modification of the Organic Law of the CSS.
