Special laws and privileged retirement regimes continue to be a constant burden on public finances and the Social Security Fund (CSS), according to statements from Olmedo Estrada, a specialist in the matter. Estrada pointed out that while some citizens must contribute for more than 25 years to receive a modest pension, there are sectors that enjoy privileged benefits with fewer years of contributions and much higher amounts.
Estrada warned that these special pensions, along with subsidies and other burdens, have disrupted the pension system, affecting the financial sustainability of the CSS. The defined benefit regime, which is currently funded by contributions from active workers, is in a critical situation, according to the most recent financial reports from the entity.
Amid growing concern about the future of the CSS, it has been publicly recognized that the Invalidity, Old Age, and Death (IVM) program is not sustainable in the long term. The lack of action by authorities regarding the impact of these special pensions on the sustainability of the system is highlighted, putting its future at risk.
Experts like Olmedo Estrada have emphasized the urgent need to review and reform these regimes to avoid an imminent collapse of the pension system in Panama. They warn that any adjustments should start by eliminating the distortions caused by special pensions, in order to ensure greater equity and sustainability in the system.
Despite the alerts raised by economists and analysts, the issue of special pensions remains a thorny matter, with some opinions pointing to a lack of political will to address the problem, given the influence of certain beneficiary groups in government and public spheres. A comprehensive approach and difficult decisions are necessary to secure the future of the CSS and the well-being of contributors.
