The president of the Republic, William Lassoannounced on Tuesday the formation of a high-level commission that will be in charge of studying the current reality of the Ecuadorian Social Security Institute (IESS) and the reforms that would be necessary to be able to leave the “black hole in which it finds itself”.
The members of this commission will be announced after the carnival holiday, added President Lasso, who stressed the importance of creating more jobs so that more young people have access to a job and there are resources for the retirement of those who have already reached the time.
He indicated that a reform to the Capital Market Law is important to invest social security resources.
This announcement generated divided criteria among different actors linked to social security who were consulted by this newspaper.
Manuel Muñoz, president of the National Confederation of Retirees and Pensioners of Montepío of Ecuador, He claimed to be in “total disagreement” with the creation of the high-level commission.
The leader indicated that the IESS is autonomous and has sufficient power in its Board of Directors to solve the multiple problems that the entity faces.
He revealed that the Confederation has repeatedly requested a meeting with President Lasso to try and discuss actions in the short and medium term.
“Appointing a High-Level Commission only further politicizes the IESS, which I take the opportunity to remind everyone that it belongs only to retirees and affiliates,” said Muñoz, who clarified that the confederation he presides over is the only entity that legally represents the retirees of Ecuador and therefore “is the only Confederation that exists in the country.”
For its part, Jorge Wated, who was president of the IESS Board of Directors, from May 4, 2020 to March 8, 2021, agreed to the creation of an emergency commission.
He mentioned that this body should comprehensively deal with the IESS situation in a technical and not a political way, prioritizing the problems in health and in the pension fund; and applying once and for all a mechanism for the purchase of medicines and medical supplies that guarantee transparency and good quality in the health service.
In addition, he indicated that they must make profound decisions about the financing of the pension fund, which may have solutions with reforms proposed by the Board of Directors itself, which according to Wated, should not mean an increase in the retirement age, but the calculation of the amount to the new contributors and a reform of the law so that the contributions to the retirement fund are also discounted proportionally on the tenths that the affiliates receive.
With this, Wated refers to the approach that in days gone by the president of the Ecuadorian Social Security Institute (IESS), Francisco Cepeda, as a way out of the crisis of the organism.
Proposal of the president of the IESS on raising the age for retirement, without the support of experts
Cepeda proposed raising the retirement age, adjusting the formula for calculating the pension, allowing a personal account for members who want to contribute more and improve their retirement, and that the State’s contribution to the IESS be based on GDP.
However, after Cepeda’s public statements, the IESS, through a statement, clarified that the institution “at the moment” has not analyzed the possibility of increasing the contributions of the affiliates, nor modifying the age for their retirement.
The IESS explained that Cepeda maintains open channels for dialogue with different sectors. He indicated that he has met with retirees, affiliates, workers, employers, among others, to listen to their requirements and define solutions and methodologies that are viable to guarantee the sustainability of the institution over time.
Finally, Wated pointed out that the commission must urgently try to renew the Board of Directors, which has been in office for more than five years.
“This commission should not delay the payments that the State has on the different insurances of the IESS that to date reach approximately 8 billion,” Wated said.
While, Rodrigo Ibarra, president of the Ecuadorian Association of Actuaries and university professormaintained that the formation of a technical commission to provide solutions to the complex situation of social security is a good first step.
He suggested that the commission should be made up of people who, due to their experience, knowledge or level of convocation, represent the various actors.
“I believe that said commission must have both gender and intergenerational equity and could be made up of nine people: four professionals in demography, actuarial sciences, economics and labor law or social security, four representatives of employees, employers, retirees, the Government and a representative of the ILO (International Labor Organization)”, said Ibarra.
He added that it is important to take into account the opinion of young people and the academy. This commission should give priority to technical aspects, he said.
“In my opinion, a similar commission should be created to deal with the issue of health and other benefits,” he concluded. (I)
Source: Eluniverso
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