The pension fund is guaranteed until 2035

Ecuadornews:

The pension fund is guaranteed until 2035

Within a line of optimization of resources, the social security entity studies to reduce by at least $ 60 million the expenses for the purchase of medical supplies. The president of the Ecuadorian Social Security Institute (IESS), Manolo Rodas, gave an interview on the night of Tuesday, May 8, to Ecuador TV.

There he gave details of his management. Rodas referred to the ruling of the Constitutional Court (CC) regarding the restitution of the contribution of 40% to the pension fund by the State to the IESS and said that it is necessary to draw up a road map with the Ministry of Finance for the return of this money that was not received since 2015.

He recalled that by sentence these items must be canceled from 2019. He also explained that the actuarial studies of the IESS projected the security in the funds until 2021, but with the restitution of the funds to be made by the Government, resources would be guaranteed until 2035.

Without going into details, Rodas said that the situation of the institution “is delicate” so it requires management to ensure its sustainability. Partnerships with the private sector at the same time, the official expects to present a project of alliance with the private sector to delegate the management of their pharmacies, within a framework of optimization of resources. “We have had important conversations so that the logistics part can count on the support of experts in the handling of these issues.

In the country there are many strengths in the systemic development of the pharmacy area. We have to look for the optimization of spending resources within social security, “said Rodas. For the authority of the IESS requires the optimization of the system of purchase and contracting of medicine, medical supplies and equipment, since currently they are allocated for these items about $ 400 million and the proposal has been made for a reduction of $ 60 million.

The official explained that for this purpose we must take advantage of the economy of scales and thus acquire medicines with better prices, in addition to reducing administrative costs and referrals to private clinics.

Retirees present constitutional action

On Wednesday, May 9, a group of retirees filed a constitutional motion to overturn resolution 501, which reduced the rate of contribution of pension and occupational risk insurance, in order to increase the percentage destined to the health fund.

This was stated by the lawyer Patricia Borja, who said that although the rate of contribution to the pension fund has increased, it is still insufficient to cover benefit expenses. She explained that since 2014 the pension fund had a cash deficit and despite this the previous government abolished the 40% state contribution for retirement pensions.

To this is added the adoption of resolution 501 in November 2015. “As a consequence of the declaration of unconstitutionality of the suppression of the State’s contribution and the declaration of unconstitutionality to the ceiling of the workers’ profits, the benefits of the houses have run out of proper financing, “lashed Borja.

She added that this situation will determine that the resources of the pension fund are used to finance the benefits of this sector.

Concern Proposal of Retired

Retirees propose that all contributions of housewives enter an independent account so that the obligations that the IESS has with the State are not confused with the pension fund.

2 judgments issued by the CC regarding the pension fund and ceiling on profits.

Jurist calls for measures

Santiago Guarderas demanded that the authorities of the IESS take urgent measures before the situation of the institution. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/iess-fondos-pensiones-ecuador