Social Security Fund on its death bed

The Panama Chamber of Commerce, Industries and Agriculture (Cciap) said Sunday that for over 15 years, it has insisted and called for “urgent” reforms to be made to the structure and governance of the Social Security Fund (CSS) and “the national government has no more time and has to act.”

This, was after the Technical Actuarial Board referred to the weak financial status of the exclusively defined benefit pension system.

In a report delivered to the Social Security Administration, the board warned that “time has run out and the necessary measures to balance the regime cannot be delayed. Postponing the decision will have serious economic, political, and social consequences for the country.”

“The patient is dying and with this, we will not only have to introduce the structural changes that we have avoided implementing for years, but the cost of being hospitalized for so long will be higher for everyone,” said the Chamber.

The Cciap recalled that in 2021 the employer sector participated in the dialogue established by the Government, reiterating the importance and need for the worker sector to be part of it. At that time, the intervention of the International Labor Organization was considered beneficial.

“However, it was said that this body would deliver a report between July and August of this year, but it has not arrived; Meanwhile, the CSS is dying, and it really can’t take another second”.

The organization pointed out that the diagnosis has been made for years and that this administration “has the last chance” to lead a change in the system that guarantees its economic sustainability and the future well-being of all Panamanians.”

In the chamber’s opinion, proposing short-term proposals that ignore the country’s demographic and economic reality is to deceive the population and condemn the country to failure. The moment requires us to be realistic and face the situation responsibly, in order to ensure the future of all Panamanians, the union emphasized.

“Mr. president! If there is a decision that must be made with a profound impact on the quality of life of its people, this is it. Save our patient” concluded the statement.