Bill 258.

Summary.

The bill would establish the National Commission for the Review of Pensions and Retirement Benefits (Comisión Nacional para la Revisión de Pensiones y Jubilaciones) as a collegial body charged with examining and recommending adjustments to current pensions of the Social Security Fund (Caja de Seguro Social) under the disability, old age and death program and occupational risks program, as well as State retirement benefits. It requires the Commission to meet sufficiently in advance and submit a technical report with adjustment recommendations to the Executive Branch (Órgano Ejecutivo) every two years. Its functions include basing proposed increases on special studies and research, receiving and deciding reasoned requests from the National Confederation of Pensioners and Retirees, and adopting internal rules.

The Commission includes the heads of the ministries responsible for economy and finance, health, and labor, or their designees; the director of the Social Security Fund, or a designee; and three representatives of legally recognized pensioner and retiree associations. Those associations agree on their selection process and notify the Executive Branch of their representatives through the Ministry of Economy and Finance (Ministerio de Economía y Finanzas). A representative of the Office of the Comptroller General of the Republic (Contraloría General de la República) may speak at meetings but may not vote. Each member has an alternate designated by the respective organization.

In preparing recommendations, the Commission considers national economic and social policy, income redistribution policy, the current minimum wage, the consumer price index or basic basket, pensioner and retiree payroll information, current pension amounts and their historical progression, and other factors that may affect disposable income. It may invite representatives and technical or advisory staff of State bodies and nongovernmental organizations to speak on those criteria. It may also establish subcommittees of three members for preliminary studies and work; each must submit a detailed report when its assigned term ends.

The technical report is submitted every two years in July through the Ministry of Economy and Finance. A recommendation to increase benefits must identify available funding sources. The Executive Branch considers the report and projects the appropriations it deems necessary for the following year’s General State Budget; allocated funds are transferred to the Social Security Fund and the relevant entities in January. The bill amends Article 40 of Cabinet Decree No. 68 of 1970 (Decreto de Gabinete NO.68 de 1970) concerning the minimum and maximum amounts of permanent total disability pensions and occupational risk survivors’ pensions. It adds Article 40-B to Cabinet Decree No. 68 of 1970 (Decreto de Gabinete No. 68 de 1970) and amends Article 192 of Law 51 of 2005 (Ley 51 de 2005) to provide for biennial reviews, consideration of recommendations and inclusion of budget appropriations. Increases to survivors’ pensions are shared proportionately among beneficiaries of the same deceased person.

The transitional provision sets the Commission’s installation for January 1, 2025, its first report for July 2025, and inclusion of projections for the first biennial increase in the 2026 budget. Article 14 identifies the amendments to Cabinet Decree No. 68 of March 31, 1970 and Law 51 of December 27, 2005; the proposed law would take effect upon promulgation. Its provisions concern the Executive Branch, the Ministry of Economy and Finance, the Social Security Fund and the Office of the Comptroller General of the Republic, and could affect pensioners, retirees, their associations, survivors’ beneficiaries and public bodies responsible for budgets and benefits.