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Recognition Bonus for ONP Members and Former Contributors Who Choose to Switch to a Private Pension System Will Enhance Resilience National pension systemsaid the Social Security Standards Office (ONP).
The measure was approved at the urging of Congress, and the ONP now warns that massive migration of savers will be encouraged. In total, it is estimated that some 4.6 million members of the national system may opt out and request their transfer to the AFP.
“The approval of this new recognition bonus exacerbate this financial imbalance because it is estimated that about 4.6 million branches may stop contributing to the National Pension System (SNP),” said ONP chief Victorugo Montoya.
The bond is said to have a financial cost of over S$40,000 million and will impact payments to current retirees as affiliate contributions are currently being used to pay the monthly wages of more than 630,000 insured people across the country.
As is known, national pension system It is based on the principle of intergenerational solidarity.
“Under this model, the insured’s pensions are covered by contributions from labor market workers who later reach retirement age, and their pensions are covered by contributions from new generations of older workers. they explain.
In addition, Montoya recalls that contributions from branches this is not enough to cover the monthly payment of the pension fund, so the State Treasury and the Consolidated Reserve Pension Fund (CFR) are used.
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.