Former President of the IESS rejects report that states deficit

Fernando Cordero, former president of the Board of IESS, dismisses the actuary report that indicates a deficit in the entity. (Source: Ecuavisa.com).

Fernando Cordero, former president of the Board of IESS, and current Defense Minister, dismissed the current IESS report, which was issued in 2013 (based on 2010 data), and conceptualized a deficit of $ 5.142 million until 2050, even considering the state contribution of 40%. The same was accredited by the Superintendency of Banks and a consulting firm.

This report warned that “there would be an actuarial deficit, there would be crisis in the IESS, that it would not be possible to pay pensions,” said Cordero, who noted that this was repealed by omitting a profit of $ 700 million generated by the portfolio. These statements were made amidst the public debate on the consequences of the elimination of the 40% state subsidy.

If the bill for Labor Justice and Home Labor Recognition is adopted, automatically, the state would stop contributing that 40% to the retirement pensions, which is stipulated in the Law on Social Security. Among the proposals of Cordero, is to raise one year the retirement age, every five years, since if removed the state contribution, the fund could sustain itself without problems.