A group of retirees and contributors of Paraguay's Social Security Institute (IPS) submitted a popular initiative bill to the Superior Court of Electoral Justice (TSJE) on February 12, 2026, aiming to reform the governance of social security. The proposal, called "IPS without politicians," amends Law No. 98/92 and removes the Executive Branch's prerogative to appoint members of the institution's Board of Directors.
Organizers have already collected more than 20,000 signatures—10,847 electronically through the TSJE portal and about 10,000 on physical forms. To turn the initiative into a bill, 51,371 valid signatures are needed. Any citizen can support the proposal by entering their ID details on the Electoral Court's website.
Gustavo Canatta, one of the initiative's promoters, said the current model allows the government to maintain effective control of the board even as a minority, thanks to the "double vote" mechanism and the political subordination of board members who should represent contributors. "Social security must be managed by its true owners," Canatta stated in the submission to the TSJE.
The project also highlights the Paraguayan state's accumulated debt to the IPS, which exceeds US$600 million. For retirees, it is contradictory that the institution's largest debtor participates in its administration.
Under the reform, the Board of Directors would have six members: two representatives of insured workers, two of retirees and pensioners, one of employers, and only one from the Executive Branch. Board members would be elected by popular vote supervised by the Electoral Court, rather than appointed by the president from sectoral shortlists.
Another significant change is how the IPS presidency is chosen. Currently appointed by the Executive, the president would instead be elected by the board members themselves from among the worker or retiree representatives, with a three-year term and the status of "first among equals."
The proposal imposes strict requirements for board candidates: a university degree, preferably a postgraduate qualification in law, economics, administration, or social security, and at least five years of experience in financial, insurance, or pension fund management sectors. While in office, partisan political activity and holding union leadership positions are prohibited.