LatinNews Daily - 19 March 2025

*Panama’s President José Raúl Mulino has promulgated legislation which reforms the country’s social security system (CSS) and seeks to address the massive shortfall in the pensions system, known as Invalidez, Vejez, y Muerte (IVM). Approved by the 71-member unicameral legislature on 13 March, the reforms maintain the retirement age at 62 and 57 for men and women respectively, increase employers’ contributions, and retain a commitment from the government to contribute US$966m a year to cover the IVM’s annual deficit. In a statement, President Mulino said that the reforms guarantee that the institution’s funds will not be privatised, with 90% to be managed by state-run banks (Banco Nacional de Panamá and Caja de Ahorros) and the rest by other banks. The reform package has been rejected by leading unions such as construction workers’ union, Sindicato Único Nacional de Trabajadores de la Construcción y Similares (Suntracs), which claims it is aimed at privatising health and pension provision for the benefit of banks and big companies. Yesterday Suntracs staged demonstrations in the capital Panama City in the Albrook area, while a leading teachers’ union, Asociación de Profesores (Asoprof), has called a 24-hour strike for 21 March according to press reports.

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