Bill 718.

Summary.

The bill would establish a Voluntary Retirement Incentive Program for pensioned or retired public servants. Those meeting its requirements could participate, subject to exclusions for specified positions and circumstances. Applicants would need at least 5 continuous years of creditable service in public administration, a pension or retirement benefit from the Social Security Fund (Caja de Seguro Social), and no serious disciplinary proceedings or criminal investigation or conviction involving harm to public administration. The employing institution would send an offer to eligible servants. An interested servant would have to accept it, request and complete the enrollment form, and submit a voluntary resignation at least 30 calendar days before its effective date. A second provision also labeled Article 3 would make the decision irrevocable once the institutional resolution approving the resignation and awarding the benefit has been notified.

The direct incentive would equal one month for each year of service, up to 12 months, using the average salary from the 10 highest-paid years in public service. For service of less than 10 years, the bill refers to the monthly average over the time worked. Payment could not exceed 100,000 balboas and would be exempt from income tax. Withheld employment benefits would be subject only to deductions required by applicable law. Upon separation, the servant would receive immediate payment of the seniority premium, the administrative career bonus, accrued and proportional vacation, and the corresponding share of the thirteenth-month payment. The incentive would be applied annually within the first 90 days of each fiscal year. A recipient could not subsequently be hired by any state entity through a permanent or temporary payroll position or a professional services contract.

The program would exclude Foreign Service personnel; officials of the Judicial Branch (Órgano Judicial) and the Public Prosecutor’s Office (Ministerio Publico); elected officials; members of the Public Force and permanent members of the Fire Department (Cuerpo de Bomberos); municipal public servants; and public servants providing temporary services to the State. It would also exclude positions essential to health services or the functioning of state administration, as well as persons facing disciplinary proceedings, awaiting execution of a disciplinary dismissal sanction, or prosecuted or convicted for offenses against public administration.

The Ministry of Economy and Finance would retain the use of funds associated with positions vacated under the program until the amount credited has been recovered. The position could then be used again. The ministry would issue implementation, payment and calculation guidelines and procedures, while the Executive Branch would issue implementing regulations. The proposed law would take effect upon promulgation. Its provisions concern the Social Security Fund, public employing institutions, and the public employment, health care and state service sectors.