March 2020

Lessons from Latin America: Innovations in Politics, Culture, and Development

By Kirk Bowman, Felipe Arocena Since the early 1980s, Latin American countries have been innovative in a range of policy and cultural experiences, including health care, voting, pensions, and multiculturalism. And yet, their policy innovations are rarely found in textbooks. This book addresses that gap, providing a fascinating and wide-ranging exploration of both the history of "looking down" at Latin America and the political, economic, and cultural "lessons" (including successes, failures, and unintended consequences) that should inform important policy...

Mexico. ‘Unsustainable’: Mexico’s Pemex Buckling Under Crushing Pension Debt

Straining under a massive debt load and at risk of a ratings downgrade, Mexican state oil company Petroleos Mexicanos (Pemex) was hit with a record jump in its pension liabilities last year as more workers retired on generous benefits. Pemex [PEMX.UL] is fighting to avoid having its bonds cut to "junk" or speculative grade, which would put pressure on Mexico's sovereign rating and deal a heavy blow to populist President Andres Manuel Lopez Obrador, who has vowed to revive it. Read...

Argentinean House of Deputies approves changes to privileged pensions

After a heated debate between the ruling party and the opposition, the Argentinean House of Deputies passed a draft bill to modify the pension system for judges and diplomats. Although the voting resulted in 129 votes in favor and none against, the legislative debates were heated. The bench of Juntos por el Cambio denounced 'irregularities' to gather the necessary quorum to debate the draft bill, due to the presence of lawmaker Daniel Scioli, who made it clear that he...

February 2020

Latin Americans Expect To Have ‘Gaps’ In Retirement Income: LIMRA

A new study finds that 64% of Latin American adults expect to have significant gaps in their retirement funds when they turn 60, and 52% don’t believe the income from their government-funded pension (Social Security) and their employer-sponsored pension will cover basic living expenses. Also Read Which countries’ workers spend the longest (and shortest) in retirement? The study was conducted by Secure Retirement Institute and the Society of Actuaries (SOA) Almost half of Latin American consumers consider it their...

Deal reached to cut bankrupt Puerto Rico’s debt by $24 bln

Puerto Rico would shed about $24 billion of debt and move closer to exiting bankruptcy under an agreement with bondholders announced on Sunday by the U.S. commonwealth's federally created financial oversight board. The deal would cut $35 billion of bonds and claims to about $11 billion as it increases the ranks of general obligation (GO) and Public Buildings Authority (PBA) bondholders that signed onto a plan to restructure core government debt and more than $50 billion in pension obligations...

Reforming Pensions in Developing and Transition Countries (Social Policy in a Development Context)

By K. Hujo This book moves beyond technical studies of pension systems by addressing the political economy of pension reform in different contexts. It provides insights into key issues related to pension policy and its developmental implications, drawing on selected country studies in Africa, Asia, Eastern Europe, the Middle East, and Latin America. Get the book here

January 2020

Costa Rica: Increase In The Social Security Contribution Towards Disability, Old Age And Death

By Anna Karina Jiménez, Gloria Leandro the amendment to Transitory XI of the social security contribution towards Disability, Old Age and Death (IVM by its Spanish acronym) Regulation was published, accepting the recommendation of the Dialogue Board of 2017, which proposed accelerating the implementation period of the established steps for the contribution amounts of the IVM, by the Board of Directors of the Social Security Administration (CCSS) in 2005, so that, as of January 2020, instead of applying...

Piñera’s proposal fuels debate on low pensions in Chile

The controversy over low pensions in Chile, the most serious problem identified by the protesting social movement, has increased after President Sebastian Piñera announced changes to the country's pension system. The Chilean president announced on Wednesday evening that he would submit this week a bill to Congress seeking to improve all pensions and, especially, those of women, the middle class and dependent elderly. Piñera said this bill represents a 'structural change,' with a system based on State, worker and...

Public sector salaries and pensions rise in Uruguay

The Uruguayan government reported today that it decreed a salary increase of 8.7 percent for civil servants, whereas pensioners will receive similar benefits from this year. According to the presidential decree approved by the Council of Ministers, the specific figure is in line with inflation, to maintain real wages. Other data from the National Statistics Institute indicate that since 1998, civil servants of the central government have received the highest average pay rise, of nearly 40 percent. On the...

Chile’s Pinera proposes reform of pension system that has fueled protests

Chilean President Sebastian Pinera said on Wednesday that he will send a bill to Congress this week to reform the country’s pension system, which leaves many retirees living in poverty and has been one of the main complaints of protesters in months of demonstrations. Read Also Piñera’s proposal fuels debate on low pensions in Chile In a radio and television broadcast, Pinera said he will propose a 6% increase in the pension contribution per worker. Chile’s pension system is a...