Observation (CEACR) - adoptée 1998, publiée 87ème session CIT (1999)

1. In its previous comments, the Committee noted the adoption of Act No. 1732 of 1996 establishing a new pension scheme. It also noted the observations made by the Bolivian Central of Workers and the National Confederation of Pensioners of Bolivia. Consequently, the Committee had hoped that the Government would communicate a detailed report allowing it to assess whether the new legislation continued to ensure the application of the Convention. In this regard, the Committee notes with regret that the Government's report consists only of the text of the above Act No. 1732, which replaced the old pension system based on share-out and administered by the Bolivian Institute of Social Security with a system based on individual capitalization of the insured person's assets and managed by private bodies.

Given the fundamental changes introduced into the pension scheme by Act No. 1732 of 1996 and its Regulations (Supreme Decree No. 2469 of 1997), the Committee must urge the Government once again to supply a detailed report containing, for each Article of the Convention, all the information requested by the report form adopted by the Governing Body, including statistics on coverage and the amount of invalidity, old-age and survivors' benefits.

The Committee also wishes to draw the Government's attention to the following specific points.

Level of benefits. The Committee recalls that the Convention provides for a minimum level for invalidity, old-age and survivors' benefits. For a standard beneficiary, invalidity benefits should be 50 per cent of the reference salary after a qualifying period of 15 years of contribution. In the case of old-age benefits, the amount should be 45 per cent of the reference salary after 30 years of contribution, and 45 per cent after 15 years of contribution in the case of survivors' benefits. That level of benefits must be maintained throughout the duration of contingency, or until such time as the invalidity benefit is replaced by old-age benefit, irrespective of the amount accumulated in the individual account of the insured person, and irrespective of the type of pension chosen (life annuity contract or variable monthly annuity contract), in accordance with Articles 10, 11, 17, 18, 23 and 24 of the Convention, read in conjunction with Part V of that instrument concerning the calculation of periodical payments.

Adjustment of pensions. The Committee recalls that, under Article 29 of the Convention, invalidity, old-age and survivors' benefits currently payable must be reviewed periodically following substantial changes in the general level of earnings or substantial changes in the cost of living.

Responsibility for providing benefits and administering the system. Under Article 35 of the Convention, the State must accept general responsibility for the due provision of benefits and must take all measures required for that purpose.

In addition, Article 36 of the Convention provides that representatives of persons protected shall participate in the administration of the pension system.

2. The Committee also hopes that the Government will provide information in its next report on any interim measures taken with regard to persons who were members of the old pension system administered by the Bolivian Social Security Institute. Please also indicate the measures taken to ensure, in accordance with Article 29 of the Convention, the review of invalidity, old-age and survivors' pensions paid under the old share-out system, including information on statistics requested in the report form under this Article of the Convention.

[The Government is asked to report in detail in 1999.]