By Yaneth Estrada
Salvadorans living abroad are concerned that they could lose the savings were retained them during their working life in their country.
Las AFP, institutions that collect funds withdrawals Salvadorans employees, They are forcing everyone residing outside of El Salvador to renounce their nationality to withdraw their savings.
This week, a new amendment to the Law on the Pension Savings System (SAP) in the Legislature, revived concerns Salvadorans abroad.
But nevertheless, the issue has now, several years in discussion and despite achieving changes 2017, legislators do not have all the answers, questions and concerns of contributors nor contemplated a way to make the current system, be sustainable over time.
"Why a Salvadoran must renounce their nationality? Suffice to demonstrate that it has 5 years of being a citizen of another country, this should be reformed ", he questioned, the deputy for the leftist party, Victor Hugo Suazo, to respect the concerns of his countrymen.
According to the leftist deputy, "According to the Law, the only alternatives for Salvadoran abroad would (Article 126 last item) Salvadoran citizenship renouncing (something unconstitutional), or show a terminal illness suffered (Art. 126, literal C)”.
For now, the only option, after those two exceptions, It is reaching the age of retirement, 55 in women and 60 men, that have left some formal work, including Salvadorans living outside their country.
further, to claim their retirement savings, Salvadoran diaspora, They must report to perform the procedure personally or delegate a legal representative. And to remove, They must have met the 25 years of contributions to qualify for a monthly pension.
Workers who do not reach this working period, They can withdraw the full amount of their savings, by the same procedure personally, once reach 55 O 62 years.
From there, Suazo explained, the need to reform the current SAP Act to establish a public pension system (the FMLN proposal, leftist party) seeking benefit this highly vulnerable sector, without receiving commissions or exorbitant profits at the expense of pensioners.
Although this discussion arose from a proposal by the right-wing party GANA, Left deputy considers that this is a populist measure, little sustainable over time and also, It has certain errors of substance and form.
According to Asafondos, total members in the Savings System is Salvadoran Pensions 2. 5 million since December Year 2013. In addition the collection accumulated since 1998 until 2013, It is over 6 millions of dollars, with 7 million in savings and nominal return.
In recent 12 months, this was rentalibilidad 2.32% and the cumulative 11.85% until 2010. However, of the 48 thousand 170 pensioners to date, these are distributed as follows: 26 thousand 183 pensioners for survival, 20,044 and old-age pensioners 1,943 Disability pensioners.
What collective or individual?
In this situation, the Economist, José Luis Magaña explained that according to the law SAP, "That case is not provided for the return of balance". "Even if, You can make the attempt, there is no procedure for doing so, but it would be rather a matter of legal fight ".
But nevertheless, specialist reiterated that a solution would be, "Unless you have already reached the age to retire (55 years women and 60 men with 30 years of contributions) and has contributed less than 10 years here at home. Hence the request could, like living here ".
This applies only to those quoted to AFP, if they were in the public system (INPEP) need another procedure. "Usually, Hence there is a fallacy caused by those who promoted and defend AFP, since a pension system can not be individually ", said Magaña.
He added that even though the law says that "the money is in cotizante", If that were so, You should be able to use it, but it's not like that, nor can it be so ".
Equally, to implement these actions, economist described a bleak picture, because "if it were possible, and everyone (Or the majority) saliéramos running to get that money pension, underfinanced system would no longer exist and no pension system (being on tenterhooks pension payments to current retirees)”.
"This may sound tempting, but that's every man for himself in leaving most affected, who have less income. Discussion of pensions, It must be seen from a perspective of law. Not a service I'm buying, is a right that I am helping to finance ", he said the specialist.
for Magaña, it should be clear that "for these reasons, on the pension issue should not be commoditization and, therefore, las AFP, with their commissions and profits generated are a total contradiction to what should be a pension system ".