What happened?
The Finance Minister, Mario Marcel announced details of the fiscal compact that the government wants to implement and outlined the changes that the Universal Guaranteed Pension (PGU) would bring.
Currently the PGU delivers a maximum monthly amount of $206,173 to adults over 65 who are not in the richest 10% of the population. To obtain it it is not necessary to be retired and it can be obtained by those affiliated to the AFP and even those who continue to work.
What changes would the PGU have?
The fiscal compact proposed by the government aims to increase the amount of the general guaranteed pension to $250,000 monthly.
Efforts are also being made to increase PGU coverage so that the benefits are achieved 100% of older adults Diario Financiero reported.
How would the changes be implemented?
Specifically, the executive initiative aims to: in the first year after publication of the law The PGU is received by those who are not entitled to any other old-age, invalidity or survivor’s pension from a pension system, a mutual society or a compensation law. In addition, there would be an increase in the amount of solidarity-based disability benefits.
Al second year of validity PGU beneficiaries would be those receiving another old-age, disability or survivor pension and whose basic pension does not exceed $100,000. A new one this year Focusing instrument.
Al third year of publication Under the bill, PGU would be received by those receiving another old-age, disability or survivor pension and whose basic pension is more than $100,000 and less than or equal to $400,000.
Al fourth year of validity PGU would also be granted to those receiving another old-age, disability or survivor pension and whose basic pension is more than $400,000.
Finally, the first day of the sixth year of publication of the law Targeting the PGU would be eliminated, so the economic percentage to which the older adult belongs would not be assessed. In this way, the expansion of PGU to 100% of older adults would be met.
According to forecasts, the increase in the PGU amount and the expansion of beneficiaries would allow the contribution to increase its insurance coverage to 166,000 people by 2030.
