Arismendi Diaz Santana, an expert on pension plans in the DR, has written to Hoy to outline the major inequalities in the pension plans granted during the Fernandez administration. He makes the point that the system allows high-ranking government officials to retire with million-pesos worth in pensions after only four years in the job. High-ranking government officials are allowed to retire with a pension of 50% of their salary, even after only having served for four years. This privilege is not granted to others working in the same entities. If they have been in the post for 16 years, they are authorized 100% of their wage and if deceased, their widow or widower can claim the same amount.
“Obviously, those irritating privileges are against the nature of principles of equity, equality and social solidarity established in Law 87-01 for the Dominican Social Security System (SDSS),” writes Diaz. He explains that they also generate a major deficit that compromises the fiscal balance and makes it unlikely for the government to fulfill the fair requests of thousands of elderly Dominicans who would like to enjoy a minimum pension, as in the case of retired sugar mill workers.
“These situations take advantage of the unfair income distribution system in place that enables the state to grant millions of pesos in pensions to high-ranking government officials, which is totally divorced from the social role of the state and unrelated to any contributions or dedication the officials have made to government,” he writes.
He congratulated President Medina on the decree that limits the government pension plans, issued last week after the scandal in which the former Superintendent of Banks authorized government compensating funds for the Superintendence of Banks pension allocations to former employees, including himself.
www.hoy.com.do/el-pais/2012/10/22/451699/Entidades-violan-la-ley-al-asignar-pensiones