Panama pension reform: 58,000+ must choose new system by August 18

Panama's Social Security Fund (CSS) is urging over 58,000 individuals to decide by August 18 whether to move to a new pension system. This new "Sistema Único de Capitalización con Garantía Solidaria" was established by Law 462, which reformed the 2005 Law 51.

“

The decision must be analyzed individually and I recommend using the Mi Caja Digital tool, which allows you to consult your contribution history and make projections to determine which modality might be more convenient.

Of the 62,314 people eligible to benefit from the change, only 4,294 have made a decision so far. César Herrera, CSS Director of Finance, explained that while the move is not mandatory, projections often show pensions increasing by 10% to 15%. He stressed the importance of using the "Mi Caja Digital" tool to analyze personal contribution histories and forecast which system would be more advantageous.

Individuals who began contributing before 2007 are generally in the "Subsistema Exclusivo de Beneficio Definido" (SEBD), unless they voluntarily moved to the "Subsistema Mixto." Those who started contributing from January 1, 2007, belong to the "Subsistema Mixto." The CSS tool allows contributors to verify their data. Herrera specifically advised those retiring between now and 2032, including women reaching retirement age in that period, to pay close attention. However, he clarified that the decision is not limited to those nearing retirement; even a 48-year-old man might benefit depending on his job stability and current salary.

“

Those people have the option, if they are in the mixed system, to change, if it suits them; there is no obligation, but I have run calculations, and most people receive pensions 10 or 15% better, but they have to use the tool and make a decision; nobody forces them.

Herrera also reminded individuals that they can file claims with the CSS if they find any irregularities in their contribution records. The deadline for this significant financial decision is August 18, 2026. The CSS emphasizes that individuals should carefully consider their options before making a choice.

“

For example, a 48-year-old man; it may be that for that person, depending on their job stability and the current salary they earn, it is also convenient to change, but they have to make a decision, because the tool allows projections.