Mulino will Sign the Law for New Discounts for Retirees on Monday.

The President of the Republic, José Raúl Mulino, announced that this Monday he will sanction Bill 746, an extensive regulation that updates, adds to and expands the benefits of Law 6 of 1987 in favor of retirees, pensioners and senior citizens in the country.

The document reached the Executive branch after its approval in the National Assembly, marking a victory for senior citizens’ groups. The president confirmed the progress of the process via his social media account.

“I just received at the Presidential Palace the law regarding discounts for retirees, as agreed upon with the President of the Assembly, Shirley Castañeda, members of the Commission, and the Minister of Economy and Finance, Felipe Chapman. I will proceed with the corresponding approval on Monday,” the president stated.

The bill is the result of a large-scale working group that brought together representatives from the private sector, commerce, business, and the government. Its main objective is to reduce expenses related to healthcare, assistance, mobility, and living conditions for senior citizens by establishing a new catalog of mandatory discounts.

The Law will officially come into effect six (6) months after its promulgation in the Official Gazette, giving companies and institutions a period to adapt their billing systems.

Breakdown of the new discounts and benefits

The regulations establish a wide range of percentage adjustments to final prices, divided into essential areas:

Telecommunications and Basic Services

• 30% discount on the fixed charge for residential telephone service (applies to a single number, residential contract in the beneficiary’s name).
• 20% discount for mobile phone service (contract in the beneficiary’s name, one number only, and contract amount not exceeding $30.00).
• 20% discount on internet and/or cable television service (contract in your name, residential, main residence, and contract amount not greater than $50.00; the excess is charged at the normal rate).
• 20% discount on the sanitation fee (contract in your name, for residential service and that constitutes your main residence; the normal rate applies to the excess).

Health, Cancer Treatments and Examinations

• 30% discount on procedures, interventions and therapies for the treatment of cancer, as well as oncological medicines, pharmaceutical support agents, supplies and assistance equipment related to the care of the cancer patient.
• 30% discount on all radiology services.
• 25% discount on fees for general medicine consultations, medical and surgical specialties.
• 20% discount on the value of medications (upon presentation of a medical prescription, excluding over-the-counter medications).
• 20% discount on laboratory tests.
• 15% discount on all optometry and ophthalmology services.
• Exemption from Import Tax and ITBMS on hydrocolloid patches, colostomy bags and rings, urinary catheters and creams with a medical prescription from a qualified specialist (cosmetic items are excluded).

Assistance, Mobility and Care

• 20% discount on goods, assistance equipment and technical aids, including: prostheses, wheelchairs, crutches, canes, walkers, seated rollers, portable toilets, bath chairs, hospital beds, anti-decubitus or specialized mattresses, and any other mobility or comprehensive care device.
• 20% discount on adult diapers.
• 20% discount on rental, repair, and maintenance services for assistive and mobility equipment (wheelchairs, hospital beds, oxygen concentrators, respiratory assistance, etc.). Appropriate medical certification required.
• 15% discount on the purchase of items for basic home modifications (ramps, grab bars, handrails, non-slip surfaces, and bathroom adaptations). Requires a medical prescription or functional evaluation. Does not cover general renovations or additions.

Food, Paperwork and Funeral Services

• 25% discount on the value of individual consumption in food outlets, restaurants and national and international franchises (except those considered as fondas).
• 25% discount on the purchase of coffins and urns, and on the contracting of funeral services when the deceased is retired, pensioner or elderly.
• 20% discount on the fixed charge for notary expenses in procedures directly linked to housing under the preferential interest regime for the elderly.
• 20% discount on the fixed charge for registration expenses in housing procedures under the preferential interest regime.

Additionally, it was stipulated that the properties of legally constituted associations, federations and confederations of retirees and pensioners will enjoy the same benefits in electricity, water, telephone, internet, cable television, post office box, valuation tax, Property Tax and other benefits for NGOs.

Requirements and economic feasibility

To access these rights, the bill protects:

• Panamanians: Women from the age of 55 and men from the age of 60.
• Foreigners with permanent residence: Women from the age of 57 and men from the age of 62.
• All retirees and pensioners: Regardless of age.

The status will be proven by presenting the personal identity card, the retiree/pensioner card, or the permanent resident card issued by the Electoral Court.

As a compensation mechanism for the private sector, the regulations stipulate that all discounts and concessions granted will be fully deductible from the taxpayer’s income tax at the time of filing their annual return.