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Remarks at the signing of the CSS reform law

by Martín Torrijos

The Social Security Fund reform is now the law of the republic. Pensions, present and future, have been left guaranteed, and the institution's financial strength should also give us repose.

It has been a difficult time. Well before taking office as president, I entrusted a task force to present me with a gamut of options to save the Social Security Fund. The combinations were, as you could imagine, infinite.

For example, some advocated for a formula that didn't alter the retirement age, which implied an increase in the the withholding that would have made it simply unimaginable. The other side of the coin was to maintain the withholding, which would have carried with it a retirement age that would have surpassed the life expectancy of almost all Panamanians. I had to look for intermediate solutions.

The government pondered multiple options: its own and those that were suggested to it, to make the financial strength of the institution compatible with the needs of the insured and all their dependents. I am convinced that the formula that we presented to the legislature was and is sensible.

Even so, while the proposal was being debated in the National Assembly, I held permanent meetings with civic and religious leaders, with leaders of business and professional groups and responsible labor unions. This allowed us to amend the proposal so that the decision will least affect the majority of Panamanians, especially women and those who are just about to retire.

You have to understand that the government's duty is not only to try to satisfy the citizens' individual aspirations: we have the primordial responsibility to look after the collective security. So while some, with every reason, ask "how is the reform going to affect me?," the government has to worry about how it's going to affect society as a whole.

How much is social peace worth? Or, seen from another point of view, how can we measure the cost of social breakdown, the loss of democratic stability and the collapse of financial institutions, which would carry with them the consequence of the social security system's bankruptcy?

We knew beforehand that there would be no way to satisfy everybody. For more than two years the future of Seguro Social had been debated in the dialogue process, and during recent months there had been extensive commentary on the subject.  And we have continued to discuss and comment for several more years.

But we would have ended up talking, with great nostalgia, about an institution that failed while we discussed. Now we can and must debate about an employment policy. Now we must define an efficient model for medical attention. Now we can talk, for as long as you want, about the future of Seguro Social. The difference is that now it's unencumbered, not in danger of collapse.

I feel fully satisfied with the result, and proud of the Social Security Fund task force and of the government that worked tirelessly and enthusiastically. And I must recognize, once more, the participation, the contributions, the suggestions, of a great number of Panamanians who, in a patriotic spirit, presented us with the concerns and proposals.

The National Assembly deputies invested many hours in listening to and debating the proposals. Deputies from the opposition, defying threats, knew how to distinguish the national interest from political games and contributed constructively to the debate.

It required of the deputies great political courage to approve the reform, and to turn themselves into targets of criticism for those who opposed it. But I am sure that the incomprehension of today will be the gratitude of tomorrow, when in light of serene analysis it's seen how it was that Seguro Social was able to be saved.

In the same way I want to point out the professional role played by the police. In a democracy you can't abridge the legitimate rights to associate and to demonstrate. But neither can you permit the property and safety of others to be affected. The agents of order have been instructed to at the same time be firm and tolerant and prevent, without using excessive force, the country from falling in to disorder and anarchy.

Now it's up to us to walk optimistically toward the future. No Panamanian could look serenely at posterity, with the latent threat of a financial collapse of the Social Security Fund. This threat now does not exist. Thus we can now take up, with greater zeal, new determination and better perspectives, the modernization of the state and the generation of jobs.

The doors of dialogue remain open. To the teachers and professors we reiterate our proposal to listen to their concerns and begin immediate conversations about the future of the Self-financed Early Retirement Program.

Likewise, I appeal to the humanitarian spirit, and to the sensitivity of which the doctors and health professionals are proud, so that the differences that have emerged because of the reforms don't affect the health needs of the poorest.

I am confident that very soon the country will return to normality, so that the students can make up their lost time, so that Panamanians can receive the medical attention they deserve, and so that the workers can go on contributing to the nation's development.

We have turned a page that's difficult for all. Now a future with hope is opened.

 

 

Also in this section:
Jackson, Where does public corruption come from?

Leis, Tired old political tricks alive and well
Stimson, China's snag
Council on Hemispheric Affairs, Bush hits rock bottom
Birns & Schaffer, CAFTA and its discontents
CARICOM, New thinking required
MLN-29, The Seguro Social fight
Bernal, Premeditated repression
Torrijos, About the Seguro Social reforms

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