The leader of the National Medical Negotiating Commission (Comenenal), Julio Osorio, expressed his concern regarding the reform project to Law 51 of the Social Security Fund (CSS). He pointed out that this project seeks to promote an individual accounts system, despite being presented by the Government as a solidarity system.
Osorio warned about the proposed increase in the retirement age in the project and mentioned that it could harm retirees in the long term by shifting the system towards a more individual one. He highlighted that individual accounts under this reform could imply a significant reduction in workers' pensions, possibly up to 35% of their previous income.
In contrast to the project's presentation as solidarity-based, according to Osorio, up to 75% of pension funds could be invested in high-risk markets, which could be disastrous in the event of an economic crisis. The leader emphasized that the proposal does not aim to strengthen the solidarity pension system, but rather to promote individual accounts, to the detriment of retirees.
In another line of thought, Humberto Montero, a representative of the National Front of Independent Educators (Frenei), also criticized the reform project. Montero stressed that the governmental proposal imposes parametric measures that increase the retirement age and reduce benefits without addressing the root of the problem. According to him, the goal is to burden the people with a pension system that does not meet the real needs of the insured.
Both leaders agree that the current CSS reform project benefits groups of power and the private sector, without guaranteeing stability and equity in pensions. They warn about the possibility of privatization and outsourcing of services, as well as the risks of losing the historical solidarity model of the Social Security system in Panama. In light of this, the union organizations anticipate protests and actions in rejection of the proposed law, seeking to preserve a truly solidarity-based pension system that ensures the well-being of future generations.
