Comments on: Those huge government pensions? There’s a law against that, but no one noticed

By: expatin paradise

expatin paradise — Fri, 04 Jul 2014 14:18:00 +0000

I agree with others who have opined that this cap should be imposed immediately. I would take it a step farther and require that overpayments be reimbursed to the government. Ignorance of the law is no defense to collecting benefits in excess of the limit imposed by law. Of course, it would be unfair to demand immediate reimbursement in full, but overpayments should calculated back to 1998 and collected as a percentage of the ongoing correct pension amount until full reimbursement has been made (most will never be paid in full, as pensioners will die long before that time). The Social Security Administration in the US has used this method to collect overpayments for a very long time.

I would add that the administrators of the pension program who failed to apply a law of which they should have been aware should be dismissed. It is their responsibility to apply the laws pertinent to their program, and there cannot be so many pension-related laws that this one would have slipped through the cracks for so long. This is a crime against the people of Costa Rica, although it would be unlikely that criminal charges would ever be made (or a conviction obtained if they were).

By: Yeims

Yeims — Thu, 03 Jul 2014 22:05:00 +0000

It’s stupid things like this that make ordinarily honest persons want to not pay their taxes. Indeed, why should they pay their money to a government that squanders everything they get, instead of spending it on maintenance and infrastructure.

By: Michael Connolly

Michael Connolly — Thu, 03 Jul 2014 21:00:00 +0000

Seems to me that the new administration should roll back to the legal limit, every single pension on the books! To do otherwise is to say that theft of public funds is legal and acceptable! Let the recipients come forward whining or with a lawsuit; they are in violation of the law, and it is payback time! And what a nice budget saving move that would be!

By: roberto

roberto — Thu, 03 Jul 2014 18:30:00 +0000

Oxymoron…”brain drain.” Is Chinchilla still going to teach in Canada? Anabel Gonzalez is the President of the Board of Trade of global affairs global economic forum. In 2010, Jose Maria Figueres joined IJ Partners in Geneva, Switzerland, as a Managing Partner. PS: any news about Kurt Heigis? Haven’t seen any follow-up.

By: Scott MacDougall

Scott MacDougall — Thu, 03 Jul 2014 17:46:00 +0000

I always find it interesting that historically unobserved laws, let say like building in the Maritime Zone or close to it, which was done up and down the coasts, all of sudden the existing law is to be enforced, and yes retroactively. “Funny” the feeling is it should not be considered in this circumstance.

By: Ken Morris

Ken Morris — Thu, 03 Jul 2014 17:28:00 +0000

Yeah, a public pension cap set at ten times the minimum wage for “public administration” (which presumably is higher than the minimum wage for laborers working for the government) is still pretty darn generous. This would seem roughly comparable to a public pension cap of around $200,000 annually in the US.

However, IT IS A START. With over 15% of the pensioners receiving more than this cap, and some receiving way more, simply enforcing this ignored law will help a lot.

Also, I’m not sure how egalitarian public policy should be on public pension caps. One issue is that to some extent CR competes for talent in the global market, and if pay and pensions are too low the country may well experience “brain drain.” Another is the tax policy regarding pensions. My understanding is that pensions are still taxed by the Caja (although maybe those receiving the high pensions can opt out) and I would guess that they’re subject to income tax. Since a government pension is kind of hard to hide from the taxman, these folks may be kicking some money back into the system.

I’m more egalitarian than the average and would favor a cap with a multiple lower than ten, but at some point it does become a matter of throwing darts till you hit a number and I think it’s great news that someone has dusted off this long-ignored law.

By: roberto

roberto — Thu, 03 Jul 2014 16:49:00 +0000

10 times the minimum wage for the job of “public administration” is 2,6 million colones, or 2,3 million, depending on who you ask. So the problem, clearly stated in the article, is that 15% of all government pensions greatly exceed ¢2,600,000 per month. Nothing will happen to their pensions because the “Chapulines con corbatas” are in charge of this pulperia and they are laughing all the way to the bank, or this week …all the way to Brazil.

By: disgusted

disgusted — Thu, 03 Jul 2014 15:58:00 +0000

Unsustainable pension funds. Limited to 10 times base, is that crazy or what!. so instead of 2.6 million colons it should be 2.3 million colons.. Still way out of whack . No retro and those who receive this will scream bloody murder over a small cut in pensions that are still unsustainable. Go figure. What is your bet nothing happens to their pensions??