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Trade unions and arenas call for removal of moratorium on pension debt



Four trade unions and Arena representatives submitted proposals.

Four trade unions and Arena representatives submitted proposals.

A four-year grace period during which the government does not pay interest or principal on its debts to the pension fund could affect the fund’s profitability, according to members of the Central Federation of Independent Trade Unions (CSI) and the legislative assembly. to request it. Legislative changes to establish interest and principal payment obligations.

Members this Monday submitted a proposal to amend the special law on the issuance of social security debt certificates and the dissolution of social security debt trusts, setting interest and capital payments semi-annually and eliminating the four-year grace period. bottom. period.

The reform will apply to Certificates of Transition Financing (CFTs) negotiated between the government and pension fund administrators (AFPs) with a maximum term of 50 years, an interest rate of 7% per annum and a grace period of 4 years. .

We are telling the government that we cannot stop paying interest and principal on over $8.4 billion that belongs to pension funds. ” Stanley Quinteros, SEJES

Profitability concerns.

“What we are concerned about is that the benefits of workers, donors, and the government are declining year by year, and during this four-year grace period they are giving, the government will pay $588 million in interest to workers. CSI member Stanley Quinteros, from the Salvadorian Judiciary Staff Union (SEJES), said.

Currently, the second paragraph of Article 11 of the Act provides that “the characteristics of the Transition Loan Certificate shall be defined in accordance with the policies contained in the Annual Investment Plan of the Salvadoran Pension Association.”

The association requires the certificate to establish the following characteristics: Valid for 50 years from date of issue. Denominated in US Dollars, minimum return of 7% annual interest, paid in equal semi-annual installments of principal and interest. Transferable by simple delivery of securities.

The amendment eliminates this four-year grace period, four years during which the government does not pay pensioners’ associations or AFP. ” Rosa Romero, Deputy Arena Manager

Supports sand.

Rosa Romero, Silvia Ostruga, Francisco Lira, Silvia Regalado, César Reyes and Raquel Serrano of the Nationalist-Republican Alliance (Arena) introduced bills on the proposal.

The amendment “removes the four-year moratorium that the government would have paid to the Pensioners Association or AFP,” said president Rosa Romero.

Source: Diario Elmundo

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