Panamanian President José Raúl Mulino has vetoed two bills concerning retired educators and a reintegration incentive program.
The first veto, on November 17, targeted bill No. 231, which recognized the payment of contributions made for the early retirement of educators from the 1972 and 1973 cohorts. These teachers retired in 2005 but never received the return of their withholdings from the Early Retirement Self-Financing Plan (PRAA) or the Public Servants' Pension Savings and Capitalization System (Siacap). However, the Executive branch argued that the funds were already transferred to the National Treasury in 2006 and 2009, totaling $14.6 million, concluding that creating a new payment obligation is not procedurally appropriate.
The second veto was applied to bill No. 153, which aimed to create a program of incentives and employment opportunities for reformed individuals (resocializados). The veto was due to a duplication of competencies. Three articles of the bill conflict with Law 55 of the Penitentiary System, as they conferred functions on the Ministry of Social Development (Mides) that current law assigns to the Ministry of Government in matters of reintegration, penitentiary treatment, post-penitentiary follow-up, and technical certification of the reintegration process.
The President's legal team identified two significant legal obstacles that prevented them from endorsing the legislative initiative. The partial veto allows deputies to make corrections to ensure justice for these citizens and their survivors. The Executive warns that both bills require substantial adjustments to their institutional design and fiscal regime to guarantee their compatibility with the current legal framework, both at the legal and constitutional levels.
