Concern about retirement funds

The law for Labor Justice was approved by the plenary of the Assembly on Tuesday night.

On Tuesday night, the plenary of the National Assembly adopted the Law on Employment Security and Recognition of Unpaid Labor at Home, in which the cessation of the 40% state contribution for retirement pensions is provided, so that retirees, members of the Ecuadorian Institute of Social Security (IESS) and associations have expressed concern.

Marcelo Jijón, president of the National Confederation of Retirees, said they expect a pronouncement by President Rafael Correa regarding the request of Ramiro Gonzalez (former minister) of not eliminating the government grant, and supporters of his association would have scheduled a hunger strike.

Former director of IESS Joaquín Viteri said that this law “is an imminent risk to social security,” as well as the increase of pensions based on inflation, since the increase was annual (16%) before, whereas now it will be 3%. Viteri ensures that this is an obligation of the state, that now will be diminished, because families will assume this 40%, plus the affectation of workers profits.