Sunday, February 5

CSS Defined Benefit Subsystem could collapse, warns Apede

The reserves of the subsystem of Defined Benefit of the Social Security Fund (CSS), are also about to collapse, said the vice president of the Panamanian Association of Business Executives (Ape), George Nicholas.

“There are no reservations either to say that this fund will help pay pensions, that is totally broken,” said Nicolau, who explained that there are formulas in other countries that would serve to revive the CSS pension and retirement programs.

The formula does not have to be invented, other countries have it that have done it successfully. You have to have a pension regulator,” he said.

Projections indicate that within seven years, the deficit would be $1 billion annually. And by 2050, the actuarial board report estimates that expenses will exceed revenues by between $6 billion and $7 billion.

Nicolau indicated that currently in the National Dialogue for the CSS They are waiting for the report to be presented by the International Labor Organization (ILO) on the financial situation of the pension system, but warned that the figures could be even worse than those currently estimated.

“The ILO is going to present an actuarial report and it will be worse than what the actuarial technical board presented,” Nicolau stressed.
Faced with this reality, the vice president of Apede asked the parties participating in the Dialogue for SSC to discuss the parametric reforms in a transparent manner, to learn about the work carried out by the ILO, although he admitted that these tasks require great leadership.

“You have to be transparent in everything, the actuarial reports have to be made public to everyone. Without transparency there can be no serious dialogue”, Nicolau pointed out.