Bill 711.

Summary.

The bill would establish the National Policy for Generational Renewal and Voluntary Retirement in the Public Service as a tool for planning the State’s human resources. It seeks to facilitate voluntary retirement through a financial incentive, organize gradual renewal, and enable younger generations to enter public service according to institutional needs and available funding. It would apply to public servants regardless of how they are engaged, provided they meet the requirements. Retirement must be a free, express, personal, and informed decision. Compulsion, pressure, or conditions based on age or other circumstances impairing that decision would be prohibited. The incentive would be an extraordinary benefit, separate from social security benefits and employment rights and entitlements.

Implementation would proceed gradually, according to each institution’s needs and budget. Each public institution would coordinate budget planning with the Ministry of Economy and Finance (Ministerio de Economía y Finanzas). It would also prepare and update an Institutional Generational Renewal Plan every year. The plan would assess staff age, length of service, and distribution; identify priority areas, positions, and functions; estimate potential voluntary participants without obliging them to retire; identify funding for incentives; and assess the projected retirements’ effect on operating expenditure and institutional structure.

An applicant would have to be in active service, have acquired an old age pension entitlement under the applicable social security scheme, document at least ten years of public service, whether continuous or discontinuous, and submit a free, express, personal resignation from the position held. Regulations would establish the application procedure. Institutions would issue at least one call for applications each year, consistent with their plans and available budgets. Before each call, they would provide for the funds needed under its maximum number of beneficiaries and stated conditions. Applicants would submit supporting documents within the application period. The institution would verify eligibility, decide whether the application qualifies, and notify the applicant in writing. An approved applicant would be entitled to the incentive within the beneficiary limit and allocated funds. A recipient could not be engaged again by the public sector, but could provide consulting services to the State under public procurement legislation and applicable provisions of the General State Budget.

The incentive would be based on documented complete years of public service and the monthly salary earned twelve months before the retirement application. The scale provides four months of salary for ten years of service, six for fifteen, eight for twenty, and ten for twenty-five years or more. For complete years between those thresholds, the amount at the lower threshold would increase by forty percent of the reference monthly salary for each additional complete year. The incentive could not exceed ten months of that salary. Later salary increases would be excluded, and only complete years supported by official records would count.

Each entity would include estimated beneficiaries and incentive costs in its draft budget for each fiscal year. Approved funds would be reserved exclusively for these payments and could not be reallocated, redistributed, or transferred. The State would provide the necessary resources through the General State Budget, and each incentive would be paid during the fiscal year for which its funding was allocated. The Ministry of Economy and Finance would maintain an institution-level register of retirees and incentives, subject to transparency, access to public information, and personal data protection rules. It would publish an annual report covering recipients, payments, budget impact, and changes in staffing. The Executive Branch (Órgano Ejecutivo) would issue regulations within three months after the proposed law took effect, which would occur the day after its promulgation in the Official Gazette. The measures concern public institutions, their employees, and people providing consulting services to the State.