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A law establishing the payment of an incentive bonus to ONP affiliates going into a private pension system, approved at the urging of Congress, can be discussed in Constitutional Court (CC).
The head of the Ministry of Economy and Finance (MEF), Alex Contreras, indicated that a possible legal action against the recognition bond is being assessed because of the costs it would entail for the state.
“This is a measure that we are observing and evaluating a new observation at this point, and if necessary go to constitutional Court we will, but it is under evaluation,” he said.
Contreras reiterated that the measure would come at a high cost to the country and would mean a spending initiative by Congress, which approved the measure at the urging.
“We remain in our position because this is a measure that has high financial costs for the country. In the first year alone, we are talking about more than 5,000 million salts, and in the end it turns out to be an initiative spent what we know is unconstitutional,” he said.
The minister added that this rule does not coincide with the proposal for pension reform, which is also being considered in Congress.
“On this question of reform pensions We sent a report and a proposal to the commission, which is managed at the executive level, it is already being discussed, and I hope that soon we will be able to send this version to the Congress of the Republic,” he added.
It is worth noting that, according to the ONP, the application for recognition of the pledge will be SGD 5,800 million in the first year, and the total cost is expected to be SGD 40 billion.
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.