Pension systems, a challenge for public finances

One of the main financial and social challenges facing public finances is that of pension systems, and in order to contribute to the construction of a unique pension system for the country, the book “Systems of pensions: critical study” by José Armando Plata Sandoval, superior auditor of the state of Coahuila.

The issue seeks to contextualize, in the historical and theoretical framework, the problem of the fragility of the local pension systems, in addition to emphasizing the state systems with a view to finding answers to the causes of their high actuarial liabilities and their short payment terms. insufficiency.

In the book, Plata Sandoval explores the main factors that influence the situation of local pension systems, such as demographic aspects, the administrative capacities of local officials, aspects of institutional development, and financial aspects.

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Plata Sandoval explores the main factors that affect the situation

In addition, a diagnosis is presented that describes the way in which the social protection systems for the retirement of local government workers are in a very vulnerable situation as a result of the high actuarial deficits and the little room for maneuver that they have. It provides them with a short period of financial sufficiency in their pension schemes.

“The fundamental objective of this book… is properly to ensure the financial viability of the pension systems so that they discharge for the benefit of the workers who are contributing for these purposes. Unfortunately, when the pension systems enter into a crisis, the main victim is the worker …and in this sense, basically what we seek in this critical study is to highlight those elements that must be polished to achieve viability and social justice in pension systems”, explained the auditor.

He commented that the book contains six chapters: pension systems as a public problem, pension systems: a review of the literature, historical background and current context of public pension systems, factors that affect the actuarial deficit and sufficiency term , the pension systems of the municipalities of the state of Coahuila and comments on the 2020 reform proposal to the pension system of the Afore generation.

“Pension systems: critical study” was presented in the main hall of the Braulio Fernández Aguirre Cultural Center in Ciudad Universitaria and was attended by various personalities such as the rector of the UA de C, Salvador Hernández Vélez and the President Magistrate of the Superior Court of Justice and of the Council of the Judiciary of the Judicial Power of Coahuila, Miguel Mery Ayup, among others.