What Does CSS (Social Security) Have In Common With A Cow?

(MENAFN- Newsroom Panama) The Social Security Fund (CSS) is one of the most recognizable logos in Panama and the one that has been the subject of the most discussion due to the reforms promoted by the government of José Raúl Mulino, pictured below. However, there are not many resources that can be used to explain to young people in a simple way how CSS works. There is a Spanish video out there that explains how the CSS works, making an analogy to the popular Panamanian concept of“making a cow”, where all workers contribute a portion of their income; even the government also contributes money for this“cow” or collection. This money is used for four risks: Illness and maternity, Occupational risks, administrative management and Disability, old age and death (IVM).

The video talks about the two IVM systems that are widely mentioned: the defined benefit system and the mixed system. The defined benefit system, which is the old one, also called the“solidarity system”, is where everyone contributes a part of their salary and everything in the fund is paid from there. And the other is the mixed system, which came into effect in 2008, and is where everyone who contributes after this year contributes. In this system, each installment is divided: one part goes to an individual account for the person's retirement, and the rest is used to pay everything in the CSS, including pensions from the old system. This is a learning resource to help understand the proposals and the different opinions on them. Dino Mon, head of CSS pictured below:

The video talks about the two IVM systems that are widely mentioned: the defined benefit system and the mixed system.
The defined benefit system, which is the old system, also called the“solidarity system”, is where everyone contributes a part of their salary and everything in the fund is paid from there.
And the other is the mixed system, which came into effect in 2008, and is where everyone who contributes after this year contributes.
In this system, each installment is divided: one part goes to an individual account for the person's retirement, and the rest is used to pay everything in the CSS, including pensions from the old system.
This is a learning resource to help you understand the proposals and the different opinions on them.

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