Draft bill 162.

Summary.

The draft bill would establish rules for ending the service of public employees who reach the maximum age for remaining in public service and have been granted a retirement benefit or old-age pension. It would cover employees of the branches of government, autonomous and semi-autonomous entities, municipalities, public enterprises, public universities and other public-sector institutions. It would define the maximum age of service, the end of the employment relationship, retirees and old-age pensioners. It would distinguish retirement benefits granted under a special statutory scheme from old-age pensions granted by the Social Security Fund (Caja de Seguro Social) or the applicable social security scheme. It would also cover people performing public duties through appointment, election, contract or another arrangement recognized by the Political Constitution (Constitución Política) or existing laws.

The maximum age of service would fall five (5) years after the old-age retirement age under the applicable social security scheme. Upon reaching it, an employee would cease performing public duties, subject to the stated exceptions and extensions. Reaching that age would constitute a statutory ground for ending the service relationship; the termination would have neither a disciplinary character nor the status of dismissal. The employing institution would arrange the end of service and notify the employee at least six (6) months before the date on which the maximum age would be reached and service would end. During that period, it would organize the transfer of duties, continuity of public services and immediate payment of applicable accrued rights, benefits and seniority bonuses.

The exceptions would cover elected public officials during their elected terms and officials whose terms are set directly by the Political Constitution. They would also cover employees whose continued service is indispensable to service continuity because their duties are technical, scientific, academic or highly specialized, and faculty members and researchers at public universities whose academic or research duties justify continued service. These latter exceptions would require the physical and cognitive capacity needed to perform the duties. The exceptions would be construed narrowly and would not allow anyone to remain in public service indefinitely.

An institution’s highest authority could authorize a temporary extension on grounds of institutional need through a reasoned resolution establishing the relevant technical, scientific, academic or professional reasons. An extension would last no more than one (1) year and could be renewed once if the underlying circumstances persisted; it would not create an acquired right. During the extension, the institution would arrange the transfer of knowledge and prepare, appoint or hire personnel to assume the duties. Ending service would preserve entitlement to recognition and payment of seniority pay, vacation, the thirteenth-month payment, bonuses and other benefits accrued during service.

A person whose service ended on reaching the maximum age could not receive another permanent or temporary appointment in a covered institution. A professional services contract could not be used to keep that person performing the same ordinary duties. Temporary contracts for highly specialized technical, scientific, academic or professional services would be allowed where a reasoned resolution established the service need and the absence or insufficiency of qualified personnel. Employees already at or beyond the maximum age when the proposed law took effect would continue serving for up to six (6) months. Institutions would use that period to arrange termination, benefit payments and the transfer of duties; they would also schedule replacements and fill vacancies. The proposed rules would be mandatory public-order provisions and would apply despite incompatible special rules governing public service, while compatible provisions would remain effective. The bill would take effect on January l, 2028.

In Panama (Panamá), the provisions would relate to the Social Security Fund, government bodies, municipalities, public enterprises and public universities. They could affect public employees receiving retirement benefits or old-age pensions, faculty and researchers, specialized professionals and public-sector personnel offices.