Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Seafarers' Pensions Convention, 1946 (No. 71) - Panama (Ratification: 1971)

Other comments on C071

Direct Request

2015
2011
1991

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Article 3(1) of the Convention. Pension scheme for seafarers. The Committee notes that Act No. 51 of 27 December 2005 revises the Organic Act establishing the Social Security Fund (CSS). It notes that the Act modifies key aspects of the retirement pension system in Panama, especially the following two points: first, the Act provides for transition from a defined benefit scheme to a mixed scheme which consists of different components based separately on defined benefits and capitalization and which includes a system of individual savings accounts. Second, in the context of the social insurance system, the retirement pension is paid at the normal rate from the age of 62 years for men and from the age of 57 years for women, subject to contributions having been made for at least 216 months (240 months from 1 January 2013). The normal replacement rate is 60 per cent of the basic monthly wage, to which a certain percentage may be added according to the number of years of contribution. The Committee also notes that insured persons may draw their retirement pension up to two years before the normal age, with a reduction factor of 0.8342. However, it is the Committee’s understanding that the age from which the normal pension rate is paid might be increased in the near future to 65 years for men.

The Committee recalls that the pension scheme for seafarers must comply with one of the following conditions: (a) the amount of retirement pension (including any other social security pension payable simultaneously to the pensioner) must not be less than the total obtained by computing for each year of his or her sea service 1.5 per cent of the remuneration on the basis of which contributions were paid in respect of him for that year if the scheme provides pensions on attaining the age of 55 years, or 2 per cent of such remuneration if the scheme provides pensions at the age of 60 years; or (b) the pensions provided by the scheme (including any other social security pension payable simultaneously to the pensioner and any social security benefits payable to the dependants of deceased pensioners) must be financed by premiums corresponding to not less than 10 per cent of the total remuneration used as the basis for the calculation of contributions.

In view of the fact that the major legislative reforms referred to above are likely to have an impact on the proper application of the Convention, the Committee requests the Government to supply detailed information, including statistics, enabling the Committee to assess whether seafarers enjoy, from 55 or 60 years of age, retirement pensions whose replacement rate meets at least the standards established by Article 3(1)(a) of the Convention. Moreover, inasmuch as the reforms undertaken appear, as in many other countries, to tend towards a gradual increase in the general retirement age, the Government is requested to indicate whether it is contemplating the introduction of a differentiated retirement age for certain occupations that are particularly arduous, especially seafaring. Furthermore, the Committee notes that section 153 of Act No. 51 of 27 December 2005 fixes the respective rates of contribution for employees and employers for the contingencies of invalidity, old age and death, without drawing a distinction between them. It requests the Government to indicate what proportion of these social contributions is allocated to the financing of old-age pensions so that the Committee can assess whether this rate meets the minimum requirements of Article 3(1)(b) of the Convention.

Part V of the report form. Application in practice. The Committee requests the Government to supply information on the application of the Convention in practice, including, for example, extracts from reports of the services entrusted with the application of the relevant legislation and, if possible, information on the number of seafarers covered by the defined benefit and mixed pension schemes, as established by Act No. 51 of 27 December 2005, and also on any difficulties encountered in the application of the Convention.