OPINION: Looming financial bombshell

IN the year 2016, the Social Security Fund paid $509 million in pensions and retirements. In contrast, the contribution in installments that year was just one $1.302 billion. To this are added contributions that the State pays annually to reinforce the finances of the defined benefit subprogram of Disability, Old Age, and Death (IVM).

At the current rate, the $3.980  billion held by the IVM in reserves – and with less income and more expenses every year- will be exhausted in 2025, that is, seven years from now. This is not a surprise; but  the result of a decade lost with the last two governments, which refused to act responsibly with the contributors. Increases were approved for pensioners and retirees while avoiding informing the population about the true actuarial status of the entity. This is the most serious threat to the Panamanian economy and public finances.

Against the background of economic instability that thousands of retirees and will face it is obvious that this must be a priority issue for the aspirants to govern this country. The irresponsibility and demagoguery of committing the future to the mismanagement of the present and the exasperated clientelism, they have turned into cancer that persecutes every one of us. This is the time to be responsible and make serious decisions. … LA PRENSA, Aug.26