The Association of Municipal Retirees and Pensioners of Paraguay (Ajupem) has called on municipal authorities to effectively enforce Law 7.445/25, known as the "Public Function and Civil Service Law," to bring approximately 20,600 contracted employees into the municipal pension system. According to the organization, the measure is considered essential to reverse the financial crisis that is undermining the sustainability of the Municipal Pension and Retirement Fund (CJPPM).
Felicita Narváez, a full member of Ajupem, explained that the Fund requires approximately G. 8 billion per month to fully meet its obligations, but currently collects only about G. 6 billion. This shortfall forces the entity to make fractional payments to the country's 2,771 municipal retirees and pensioners. According to sector sources, the institution's deficit has worsened since 2022 due to administrative mismanagement.
"We need the law to be enforced so that the Fund can achieve sustainability and move forward," Narváez stated. The leader emphasized that the initiative would not only increase the system's revenue but also provide social protection to thousands of workers who are currently outside the municipal pension system.
Along the same lines, Ajupem's vice president, Óscar Leguizamón, noted that the government has sent a favorable signal by promoting mechanisms for contracted employees to begin contributing effectively to the Fund. "They will have social security and will truly exist as employees. At the same time, they will help stabilize and strengthen the Fund," he said.
According to Leguizamón, bringing in more than 20,600 contracted employees represents an opportunity to strengthen a pension system based on intergenerational solidarity, in which contributions from active workers fund current retirements. The association's representatives announced a mobilization in support of implementing the law and called on mayors, council members, and future municipal authorities to ensure compliance with the legislation.
The rally is scheduled for Tuesday, July 23, starting at 10 a.m., in front of the headquarters of the Municipal Pension and Retirement Fund, on Benjamín Constant Street, at the corner of Montevideo, in Asunción. "This law benefits contracted employees by giving them social coverage, and also benefits retirees by strengthening the system. It allows us to once again envision a stable and sustainable Fund," Leguizamón concluded.