Finally, the neoliberal ruling party of Uruguay He obtained the pension reform with which he threatened during the three years of the government of Luis Lacalle Pou. Raised the retirement age from 60 to 65 and it allows that, even so, a person over that age can continue working and with the condition of contributing to the mixed regime, between state and private.

The retirement reform was one of the battle horses of Lacalle Pou in his crusade to enlarge the pension fund, enrich the Pension Savings Fund Administrators (AFAP) and to reduce the volume of expenses of the treasury destined to pay retirements.

For the president, this system was “very supportive” and that’s why it was necessary that Uruguayans work for more years formally. “More and more taxes are used to pay for the retirement system. The contributions directly involved to social security are not enough to sustain the system, ”she launched.

The approval of the pension reform in Congress

The reform was approved by 17 votes (all the official bench, except one) out of a total of 28 senators. The Upper House made reforms to the text that had been approved by Deputies and now it only remains that the executive branch promulgate the rule.

The text took months of negotiations within the ruling coalition and also with the opposition Broad Front, which did everything possible so that the reform is not so harsh and finally did not support it.

The keys to retirement changes in Uruguay

• retirement age passes from 60 to 65 for men and women, except in some sectors, such as rural and construction.
• will be needed 30 years of contributionsand those who have 38 years of service may retire earlier.
• Los over 65 may continue working but not in the sector to which they belonged. In addition, they must continue to make contributions of 15 percent to social security.
• The new regime applies for those born on or following January 1, 1973. They will retire at 61 years old, those who were born in 1972, at 62; and so progressively until 1977.
• Change the calculation system: the minimum retirement It will be computed on the basis of the best 20 years of contributions.
• The mixed system: Social Welfare Bank + AFAP.
• Contributions to Social Security are reduced state.
• is created the Common Pension Systemwhere the boxes of contributions from all sectors will come together.
• A third sub-fund is created for those who start working as over 40 years.

The celebration of Lacalle Pou

Immediately following the rule was approved, the president Lacalle For celebrated the achievement through a pre-recorded video. There he insisted that, currently, to pay a retiree “It is not enough with the contributions of those directly involved to social security”.

He said that “the asset-liability relationship has been decreasing and generating risks” and described the reform as “urgent and necessary” due to “increasingly longer life expectancy and declining birth rates.”

In addition, he celebrated having fulfilled his campaign promise: “I mightn’t look them in the eye then having enough majorities and the opportunity to do things and having let it go. I calmly say that there is reform and rest assured that there is a future”.