Social Security facing financial crisis

PANAMA’S  Social Security System is facing a financial crisis that threatens its existence says its director Estivenson Giron.

“If reforms aren’t made, the agency’s pension fund will run out of money by 2027, and will start losing money in 2019” he wrote in a report submitted to legislators on Tuesday, September 13.

The first step he suggested is a complete audit of the agency’s finances.

“We cannot talk about reforms if we do not have the figures we need,” he said.

“It is irresponsible to talk about reforms if we do not have the correct information.”

Rafael Chavarria, of the National Council of Organized Workers (Conato),sais  the crisis facing Social Security is a product of bad management, which has also affected the health care services it provides.

“There is a shortage of medicines and hospitals aren’t operated properly. This is due to bad administration,” he said.

He was also concerned about the lack of correct financial information.

Chamber of Commerce President Jorge Garcia Icaza agreed that the agency’s finances need to be studied before any decisions are made.

He also suggested that the medical and retirement services offered by the agency be run separately, since they serve different groups reports La Prensa.