The business sector lists the current weaknesses of the IGSS and suggests measures to reinvent it

A four-axis approach to improve the IGSS was presented yesterday by directors of the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (Cacif), as part of the third report on the Budget Observatory, which addressed the issue of social protection .

Roberto Ardón, executive director of Cacif, clarified that this topic is very broad because it encompasses collective services related to a series of interventions to reduce risk, social and economic vulnerability of people; but it would also be necessary to improve care for illness and disability, advanced age, survival, unemployment, housing, as well as other policies against exclusion.

The proposals

The first part of the proposal refers to the fact that “the organized private sector proposes and launches the idea that it is worth carrying out a study to measure citizen opinion on the benefits received in social protection, since it is constantly known that problems in different dependencies, so it would be worth making a global general cut in terms of citizen perception of social protection services, “said Ardón.

In the main part of the analysis is proposal number two, which is the relationship between the IGSS and its social protection component, and which includes four parameters: call a technical table to discuss new and better governance models for the Institute. The private sector has a representative on the board of directors, as do the workers, and “it is an interesting moment to have a discussion about more effective ways of providing social protection within the IGSS line.”

Alternative models of social protection are also suggested, such as those successfully implemented in other countries, so that workers can contribute while waiting to later receive more dignified retirement conditions, without compromising what is constitutionally established.

He also stressed that nothing can be done in social protection services if the administrative career and strategic plans of the Institute are not respected; and finally, discussion was suggested to expand the portfolio of services.

The third proposal is that the State contribute what corresponds and include the constitutional contribution in the next budget year, “because, if there are needs and deficiencies in terms of social protection, these can be supplied and even provide new services with resources that They can come from the state. It should be a national discussion and a permanent assignment.”

Finally, Ardón mentioned the need for the formalization and affiliation of part-time workers, who probably do not have coverage, since it is a mandate of Convention 175 of the International Labor Organization.

Who should listen?

Hermann Girón, president of Cacif, stated that the proposal is addressed to three audiences: the first is the State, so that regardless of its historical debt (not fully quantified), at least the constitutional contribution to social security, which in 2021 it was around Q750 million, despite the fact that the correct amount is close to Q2 thousand 500 million.

The second message is for Guatemalan citizens, since the fact that only a small portion of the formality has social coverage must be corrected. The third hearing, according to Girón, is related to the same social security represented in the IGSS, between the organized private sector and the union, who must participate in the discussions, as they are the ones who contribute.

“Social security already needs to have new governance models, open complementary methods and mechanisms that improve services for subscribers, so that people can contribute more to have better services and a higher pension when they retire, financed with contributions. complementary to those that the law indicates today”, explained Girón.

According to the director, this mechanism is regulated in the Organic Law of the IGSS and is part of a conversation with the authorities.

two initiatives

Girón recalled that a proposal that was presented in 2019 would also be being taken up: one is called optional optional insurance, with which a citizen affiliated with the IGSS can contribute an additional amount, to protect things that are not currently offered. In other words, “a little more quota and a little more protection.”

The other proposal is to generate complementary pensions and it consists of those who want to qualify for a better pension, they can contribute a greater amount monthly with the tax advantages that it entails, and with the economies of scale and financial returns that the IGSS can provide them.

“Those who do not want to make an extra contribution, because they do not contribute and are subject to the pensions that the Institute grants them,” Girón emphasized.

“Targeted Message”

According to trade unionist Rigoberto Dueñas, the basis of the proposal of the organized private sector is the concern for the proportionality that the Institute will offer to part-time workers, so that they are granted social security, medical expenses, hospital expenses in the same proportion in which they have contributed to the scheme.

“It is logical that, if a worker always earned the minimum wage, he will receive based on the salary for his active working life; if the worker received in this case, 50% or 40% derived from part-time work, that proportion is reasonable, ”he assured.

As for the suggested financial structure, Dueñas assured that it would be a “semi-privatization” of the Institute’s services, but the fact that they are talking about the debts of the State, the municipalities and the business sector itself. “The workers must come to the table to discuss the reinvention of the IGSS,” he indicated.

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