Since 1998, El Salvador has had a pension system administered by private operators. The privatization process during the ARENA government was inconsistent and did not have the participation of the different sectors of society.
For many years, the Salvadoran population has claimed that the pensions under the current system do not meet the minimum subsistence needs and force them to work longer than they should by law.
The legislative fraction of New Ideas has indicated that this year there will be the first substantial reform of the pension system, and it will be sought to make it self-sustaining so that the benefit received is attached to the reality of the country.
The fraction chief of the majority bench, Christian Guevara, pointed out that promoting these reforms was a direct request of the population during the legislative campaign period, since many Salvadorans do not opt for retirement because it is not worthwhile.
“We are committed to working on a fair pension law. It cannot be that the population is retiring with hunger pensions, as is currently the case. They cannot even buy medicine because it is not enough” — said the legislator.
President Nayib Bukele also indicated at the time that he would send a reform proposal to the Legislative Assembly to begin the respective analysis.
The president backed the message in the sense that pensions that are even below the current minimum wage should not be paid. Guevara, meanwhile, pointed out that, unlike the implementation of the law in 1998, this time there will be a consultation process with the sectors involved in the issue of pensions; he emphasized that this issue links the entire country.
«There will be a legal frame of reference. We are going to listen to all sectors, including unions, associations, and specialists. We will listen to the experiences of other countries” — added the New Ideas bench chief.
He clarified that, although the pension fund administrators will be heard, the priority will be on the opinions that come from representatives of civil society.
After consultation with the workers, President Nayib Bukele will send the proposed regulations for the new system to the Legislative Assembly for analysis.
The last reform to the pension savings system was made by the government of Salvador Sánchez Cerén of the FMLN and did not contribute to alleviating the situation. of Salvadoran families.