Uruguay agreed to increase the retirement age | Despite the protests, Lacalle Pou achieved his pension reform

Finally, the ruling neoliberal party Uruguay He secured the pension reform that he had threatened during the three years of Louis Lacalle Poe’s government. Raising the retirement age from 60 to 65 It allows, even then, anyone over this age to continue working on condition of contributing to the mixed system, between state and private.

Pension reform was one of Lacalle Poe’s battle horses in his crusade to expand the pension fund, Enriching Pension Provident Fund Managers (AFAP) And to reduce the volume of treasury expenditures allocated to the payment of retirees.

for the president, This system was “very supportive” And for this it was necessary Uruguayans have been working for more years officially. More and more taxes are being used to pay for the pension system. Contributions directly involved in social security are not sufficient to sustain the system.”

Approval of pension reform in Congress

The fix has been approved by 17 votes (all but one official bench) of the 28 total members of the Senate. The Senate made reforms to the text approved by the deputies and now it remains only to Executive version Al-Qaeda.

The text took months of negotiations within the ruling coalition as well as with the government The opposition Broad Front, which did everything possible so that the reform would not be harsh Finally, I did not support him.

The keys to retirement are changing in Uruguay

• The passage of retirement age From 60 to 65 For men and women, with the exception of some sectors, such as rural and construction.
• You will need 30 years of contributionsand those with 38 years of service may retire earlier.
• the Over 65 may continue to work But not in the sector to which they belong. In addition, they must continue to make 15 percent contributions to Social Security.
• The new system applies For those born on or after January 1, 1973. They will retire at the age of 61, born in 1972, and turn 62; gradually until 1977.
• Changing the account system: Minimum retirement It will be calculated on the basis of the best 20 years of contributions.
• the mixed system: Social Welfare Bank + AFAP.
• Contributions to Social Security are reduced state.
• It was created in joint retirement systemwhere contribution funds from all sectors will gather.
• A third sub-fund is created for those who begin in their capacity over 40 years old.

Celebrating Lacalle Pou

Immediately after approving the rule, the president Lacalle bo Celebrate the achievement with a pre-recorded video. There he insisted that the now retired be paid “It is not enough with the contributions of those directly involved in social security”.

He said that “the relationship between assets and liabilities decreases and generates risks” and described the reform as “urgent and necessary” Because of “increasingly longer life expectancies and lower birth rates.”

In addition, he celebrated the fulfillment of his campaign promise:I couldn’t look into their eyes Then get enough majorities and have the opportunity to do and let things go. I say calmly that there is a reform and I am reassured that there is a future.”