Meanwhile he Government of the Province of Santa Fe came out to put pressure on a pension reform that could be handled quickly, the parties that prefer to discuss the changes over a slow fire asked Pullaro to insist on demanding payment of the pension debt that the National State has had for four years with Santa Fe, a liability which amounts to $600 M.
And Pullaro – who wants the reform to happen – complied: he met this noon (Thursday the 27th) with the governors of the Central Region: that of Córdoba, Martín Llaryora, and that of Entre Ríos, Rogelio Frigerio; in the Gray House. Together they signed a joint statement in which they ask the Nation for an “urgent solution” to the pension problem of the provinces that kept their pension funds in the local orbit, and agreed that – if they do not receive a response – they will appeal to the Supreme Court .
How was the Nation’s liability generated? When, in the nineties, 11 provinces decided to transfer their pension funds to the central administration, it was agreed that the National State would cover the deficit caused by the 13 retirement systems that remained in the provincial sphere, among them, that of Santa Fe, Córdoba and Entre Ríos. In the local case, Nación complied until 2019, and then stopped paying.
In the signed document, the leaders agreed on a strategy to claim the debt. And although this strategy involves judicial presentations on the part of Santa Fe and Córdoba, although not yet from Entre Ríos, the representatives of the three provinces agreed that the way to resolve it is institutional dialogue, but that if an agreement is not reached satisfactory answer, the Supreme Court of Justice must resolve.
What the governors said
Pullaro realized the double dimension of the problem: the debt and the lack of sustainability of the retirement fund. “The claim for funds is a discussion of federalism. We supported the cuts, but this is not our responsibility. We are going to continue dialogue, but there is a natural arbiter that has to resolve this, which is the Court,” he said.
On the other hand, he highlighted the need for a reform: “It is not an easy debate. Some provinces, like Córdoba, were correcting the gaps, and Entre Ríos has raised it in the current administration. But it is unfair that the private sector maintains the public system and that we are depriving the province of necessary works. It is not taking away rights, it is taking care of the cash,” he insisted.
The Santa Fe pension deficit
In 2023, the pension deficit stood at $172,823 M, but the bleeding is much greater this year. In the first quarter alone, the fund has already accumulated losses of $114,128 million and, at this rate, before next August the forecast red will equal the figure for all of 2023.
“We estimate that by the end of the year the deficit will be $400,000 million, taking into account the joint increases,” estimated Jorge Boasso, Secretary of Social Security, in dialogue with Punto biz.
