The reform of the Paraguayan lawmakers' retirement system was automatically approved this Thursday after the Chamber of Deputies failed to deliberate on the bill within the established deadline. The new law takes effect with the text previously approved by the Senate, maintaining a differentiated and more advantageous regime compared to the general pension system.
One of the main changes raises the minimum age for extraordinary retirement from 55 to 60 years, maintaining the requirement of only 10 years of contributions. In this modality, the benefit corresponds to 60% of the average of per diems and representation expenses from the last 120 months of effective contributions.
For ordinary retirement, the requirements remain at 60 years of age and 15 years of contributions (equivalent to three legislative periods), with entitlement to 80% of the average earnings from the last 180 months, including per diems and representation expenses.
Active lawmakers continue contributing 24% of their per diems and representation expenses, while retirees will contribute 16% of their benefits. The law also allows for the return of 95% of contributions made upon request.
A transitional provision ensures that lawmakers who during the 2023-2028 legislative period complete the required contributions for extraordinary retirement under Law No. 6112/2018 may retire under the previous more favorable conditions.
Although the bill eliminates direct state contributions to the fund, the administrative expenses of the Administrative Commission will continue to be covered by the General National Budget, which maintains the use of public resources for the operation of the differentiated system.