Paraguay's 'VIP Retirement' for Lawmakers Becomes Law Amid Criticism

A controversial pension reform bill for Paraguayan legislators is set to become law automatically, as President Santiago Peña faces a decision on whether to promulgate or veto it. The bill, which underwent minimal changes, has been widely criticized as mere "cosmetic" reform, failing to address the core issue of "VIP retirement" for members of Congress.

The Chamber of Deputies' failure to act on the bill within the allotted time means it automatically receives sanction, adopting the Senate's version. This outcome has drawn sharp criticism, particularly as the reform was presented as a significant overhaul. President Peña, who has previously defended the privileged pensions, stating that legislators who supported his agenda deserved them, now holds the final say.

Last year, Peña defended the legislative pension system, which allows retirement at 55 with only 10-15 years of contributions and substantial monthly pensions. He argued that critics were too quick to judge the perceived privileges of politicians who, in his view, had earned these benefits by approving his proposed laws.

This latest reform is seen as particularly galling given the swiftness with which stricter pension requirements were imposed on teachers, police, and military personnel earlier this year. The legislative pension system, despite the new law, will continue to offer significantly higher pensions than those available to ordinary workers contributing to the Social Security Institute (IPS). Legislators will still be able to retire with only 10 years of contributions for an extraordinary pension, receiving 60% of their salary, and 15 years for an ordinary one, maintaining a stark disparity.

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I know that certainly there are many people who, with great lightness, question the supposed privileges that the political class has, in this case the congressmen, but I would tell them today that the Congress of the Nation, the Paraguayan Congress, of course, saving all its differences and its independence, but the majority who have supported the laws that we have proposed, definitely deserve it (the VIP retirement). I have no doubt.