Panama Social Security on path to $400 million deficit

(Newsroompanama.com) On Sunday, before heading for a trip to his U.S. alma mater, Panama’s president Ricardo Martinelli forecast a nine percent increase in the economy in 2011.

But the country’s Social Security Fund (CSS) is on a path towards a $400 million deficit.

 
The news is not good for Panamanian retirees who have planned to return to the streets in their continuing battle to get an increase in their pensions hit by inflation including rising taxes and transportation costs.

Guillermo Sáez-Llorens.    executive director of the CSS, says the board  has decided not to authorize a contribution of 40% to help retirees.

Speaking on Rangefinder Report today (January 5) he said the board found that "based on the finances of the CSS, it is impossible for us to give this increase because we cannot spend more than we get."

Sáez-Llorens said that the finances of the CSS are now in deficit. In 2009 the deficit was $64 million and for 2010 it will be $145 million.

An actuarial study projected to the year 2018-2019, showed the deficit will reach $400 million.

The director said that he would be be sending a note to the Executive Branch informing them of the decision of the CSS directors, but added a sweetener that the Fund is interested in finding ways of helping to get an increase for retirees and proposed that the Government increase the subsidy to the CSS.

That, he said, would deal with the contribution for retirees and the estimated deficits.

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Original Source: Newsroompanama.com

Date Retrieved: January 5, 2011.