Cabinet approves pension increase for retirees

A long delayed  presidential campaign promise to increase the benefits of Panama’s retirees got cabinet approval on Tuesday.

After over two years of demonstrations and protests increases ranging from $20 to  $50 a month  will be given to about 90% of pensioners. Some178 520   will be affected

Retirees and pensioners with a salary  of less than $200 will receive  an  increase of $50 from July 2011 (retroactive).

Those receiving between $ 200 and $250, will get a  a $ 35 increase  and for those who get between $250. and $375, a month $25.

There will be a  $20 increase for those earning between $375. and $800 a month,
Pensioners and retirees who receive amounts in excess of $800. and up $1,000 will have an annual bonus of $100 from December 2013.
the official statement did not specify where the funds will come from to fund the increases, Minister of Finance, Alberto Vallarino says the additional cost "is $58 million per year and major contributions come from the central government to the CSS  program."
Vallarino said the new annual contribution amount will be disbursed as soon as a new actuarial study of the CSS, projected 20 years is completed.