Bill 361.

Summary.

The bill amends Article 1 of Law 8 of February 6, 1997 (Ley 8 de 6 de febrero de 1997), to establish a single retirement system for all public servants of the Republic of Panama (República de Panamá), without exclusions. That system would replace the special retirement arrangements in effect in Panama (Panamá). The provision sets the general scope of the proposal: it covers public servants by virtue of their employment status and leaves no category of public employees outside the single system.

The amendment to Article 21 of the same law defines SIACAP (SIACAP) as the single savings and pension capitalization program for all public servants. It expressly includes employees who, until promulgation of the proposed law, are covered by the Supplementary Social Benefits Fund (Fondo Complementario de Prestaciones Sociales), members of the Public Force (Fuerza Pública), and permanent members of the Panama Fire Department (Cuerpo de Bomberos de Panamá). The bill provides that SIACAP may not set retirement ages, years of service, or contributions or payments below those established in Law 51 of 2005 (Ley 51 de 2005) or its amending provisions. It thus uses those conditions as a limit on the program's rules.

Through the revised wording of Article 22 of Law 8 of February 6, 1997, the bill provides that, from its entry into force, the State would no longer pay the cost of any special retirement scheme. This prohibition concerns public funding of those schemes and accompanies the replacement of special retirement arrangements by the single system established in Article 1.

The bill then amends Article 100 of Law 18 of 1997 (Ley 18 de 1997): personnel described in that law would retire under the Organic Law of the Social Security Fund. It also amends Article 56 of Law 93 of November 7, 2013 (Ley 93 de 7 de noviembre de 2013), to provide that members of the National Air and Naval Service (Servicio Nacional Aeronaval) have the right to retire under that organic law. Both provisions refer the retirement conditions of their respective groups to the Social Security Fund's statutory framework.

The bill next repeals Article 2 of Law 14 of August 30, 1984 (Ley 14 de 30 de agosto de 1984), and Article 99 of Law 18 of 1997. Its amendment clause lists the articles of Law 8 of February 6, 1997, Law 18 of 1997, and Law 93 of November 7, 2013 that it amends, together with the repeal of Article 2 of Law 14 of August 30, 1984. The bill provides that it would enter into force on the day following its promulgation.

The proposal concerns SIACAP, the Social Security Fund (Caja de Seguro Social), the Panama Fire Department, and the National Air and Naval Service. Its provisions could be of interest to public servants, members of the Public Force, and sectors responsible for administering pensions and financing retirement benefits in the Republic of Panama.