The new administration also has in mind the reform of the Ecuadorian Social Security Institute (IESS). It is not as strict as the one proposed by the previous government, but it may give sustainability to a system that has been warned that it is under threat.

The reform proposals were recently presented by the new president of the IESS Board of Directors, Eduardo Peña. In interviews for television channels, he hinted that a legal reform would be sent to the National Assembly in which the pension calculation could be adjusted because there are distortions, the idea of ​​charging for care for the children of members who currently do not pay anything, and that the number of pensioners could even be corrected contribution.

The IESS Pension Reform Commission proposes keeping the minimum retirement age at 60, but increasing the number of contributions to 35

The proposal will seek, among other topics correct the distortions in retirements and establish a polynomial formula and thus prevent those who join at 60 and retire at 70, with ten years of contributions, from having a pension amount very similar to that of a worker who has been connected for 18 years and reaches 65 contributions.

He also said that IESS is willing to accept the payment of the debt in Inmobiliara’s assets and to implement the process of payment of the employer’s arrears, which would allow for a period of seven years.

The IESS reform reduced the disparity between those who contribute for decades and those who apply the ‘Creole life’ of contributing a few years with a high salary to secure a good pension

However, in connection with these proposals, they warn of shortcomings and receive remarks because it is considered that they are vague and that there is slowness in approach and implementation.

For Henry Llanes, representative of the Collective for the new IESS, he indicates that if the proposal is presented in eight months, as Peña initially said, it will already be when they should pack their bags to go home, because the Government is already done.

Regarding the payment of the debt through real estate, he criticizes that what he would ask for would be the delivery of real estate, not liquidity, and that would create damage to social security, which already has too many assets, which are not properly managed, because he does not have them well either inventoried. “I’m not in favor of the insurance continuing to be filled with assets, in the end the buildings are thrown away.” Llanes assures that in an economy as complex as the current one, there would be no opportunity to sell said properties.

The last time the retirement age in Ecuador was changed was 22 years ago and it is now back up for debate

He does not even think that he is trying to make members responsible for childcare, but he recalls that the citizens’ proposal that is currently in the Assembly suggests that they should be transferred to the Ministry of Health.

For his part, Mauricio Espinel, who is part of the Study Group for Social Security, says that as a Study Group he will review these proposals, but previously they are considered “shots in the air”, without a plan or strategy.

For Espinel, eight months, which he says will be needed to submit the text to the Assembly, is too long, especially in the Government that ends in 2025. The Government should analyze the issue of income and expenditure, but he assures that the proposal must be accepted by the owners of the Institute, who are related companies .

Half of the reserve funds will not be able to be calculated monthly, and membership will be mandatory for freelance professionals, among the IESS reform proposals entering the public debate

He does not see that change is sought, but that he wants to repeat the same practice, but achieve different results, which is not possible. He believes that the president is also not consistent with the purpose he has clearly stated these days, which is re-election. He assures that if this is the goal, then we should strive to improve the quality of people’s lives, but that is not visible either.

According to the execution of the ministry’s budget, the Government was supposed to pay IESS 2.154 million dollars for 40% of the pension contribution by December 31, 2023, but only 832 million dollars was paid. That is, 1.322 million dollars less was paid out in this area alone. Also pending were $4.7 million of 40% labor risk and $29 million of peasant social security.