Costa Rica: Businessmen Request Review of Pension System

The seriousness of the situation of Costa Rican pension system and its negative effect on public finances has been highlighted.

Tuesday, July 1, 2014

From a press release issued by the Costa Rican Union of Chambers and Associations of Private Enterprises (UCCAEP):

The UCCAEP is deeply concerned about a recent announcement by the Ministry of Finance regarding the amount allocated to the pension scheme under the National Budget of the Republic. According to data from the ministry each year ¢90,000 million ($166 million) is paid to a group of 1,745 people.

"Although these people took advantage of the permissiveness of the system at the time managing to get pensions of up to 16 million colones, there is an urgent need for the authorities to put a limit on the amounts, as the current trend is unsustainable and will bring adverse consequences for public finances, hurting all Costa Ricans," said Ronald Jimenez, president of the UCCAEP.

"We support the search for solutions that was initiated by the Treasury and the Attorney General's Office, and encourage them to implement them as soon as possible. At a time when the country is experiencing the worst moments regarding fiscal issues, it is essential to give concrete signs that we are moving in the right direction," Jimenez said.

The sector is aware that the people who have given decades of effort to serve the country deserve to be rewarded, provided that this acknowledgment is framed within the real possibilities of the state and does not jeopardize national financial stability.

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