Members of the Central Independent Trade Union (CSI) submitted a project to reform the Social Security Mandatory Certificates Act this morning. / Susana Penate.
Members of the Central Independent Trade Union (CSI) today asked the Legislative Assembly to legislate not to stop paying principal and interest on more than $8.4 billion in debt the country owes to pension funds. requested.
The new Certificate of Pensions Obligations Act (COP), which was approved along with the December 2022 pension reform, mandates the Salvadoran Pension Institute (ISP) to convert extinguished Pension Investment Securities (CIPs) into Transition Financing Securities (CTFs). was not stipulated by law.
CIPs were issued by Pension Obligation Trusts (FOPs) set up by the state to pay public plan pensions due to lack of funds.
Trade unionists called for a change in Article 11(2) of the COP Law to curb the grace period negotiated with the government by pension fund administrators (AFPs), who represent pension plan contributors.
The new terms for 99% CFT were 7% interest rate, 50-year term, 4-year grace period (no payment of principal and interest).
“Payment of principal and interest to serial bearers in equal semi-annual installments at a minimum interest rate of 7% per annum for a period of 50 years calculated in U.S. dollars from the date of issuance. It is possible to transfer by
“We can’t stop paying more than $8.4 billion in interest and principal,” said Stanley Quinteros, a member of the CSI and general secretary of the Sejes.
Source: Diario Elmundo