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100-year annuity underpayment rises to $20.589 billion: Pineda



Patricio Pineda, founding member of Table for a Dignified Pension.

Patricio Pineda, founding member of Table for a Dignified Pension.

Patricio Pineda, president of the Mesa por un Pensión Digna organization, assured that the deficit in the system capable of paying pensions over the next 100 years has increased from $19.82 million to a total of $20.589 million. pension system.

Pineda told Diario El Mundo that the data are actuarial studies based on data from the Financial Systems Supervisory Authority (SSF).

“How much do you need to pay a pension for 100 years and how much do you need?” explains how a 30% increase in reforms increased the cost of paying pensions over the long term for 119,494 pensioners I asked the founder about this.

In an interview with Telecorporación Salvadoreña on Monday, Pineda presented the net flow of the pension system as of 30 December 2022 and projected the need for pension payments over the next 100 years to that date. The pension savings system (SAP) had revenues of $22,438.7 million, while expenses included $37,085.7 million from SAP, $1,881.8 million from transfer certificates (TC), and $57 million from ongoing pension payments. $6,881.8 million from joint and several guarantees (CGS). ), which funded minimum pensions for retirees who depleted their savings.

From these data, SAP’s net deficit balance is $15,370.6 million and the Public Pension Plan (SSP) is $4,449.4 million, or $19,820.07 million.

After the 2022 reforms, SAP revenues increased to $21,485.1 million, expenses increased to $38,871.2 million, current pension payments increased to $7,452 million, CGS increased to $11,404 million, and increased to $20,589.90 million. It explains that there will be a $10,000 deficit.

The deficit was due to negative balances of $15,319.5 million for SAP and $5,270.3 million for SPP. “It’s a 100-year total deficit and it’s delicate because the deficit has already started,” he said.

Additionally, with the issuance of $2,018.9 million Certificates of Pension Obligations (COPs) in 2023, the state’s $7,242.2 million pension debt owed through Certificates of Pension Investment (CIPs) will be reduced to $9.2 billion. It added that it would increase to more than $61.1 million. Welcome to the El Salvador Pension Service (ISP),” he affirmed of the agency authorized to issue certificates or debts to fund the payment of pensions or other national pension debts.

Pineda argues that the 30% increase in pensions for 119,494 retirees is “unsustainable” and “unfair.”

Source: Diario Elmundo

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