Struggling Social Security system faces 'informal' threat.As politicians wrangle over plans to fix the nation's Social Security system (IMSS IMSS Instituto Mexicano del Seguro Social (Spanish: Mexican Social Security Institute) IMSS Istituto e Museo di Storia della Scienza (Italian) IMSS InterScan Messaging Security Suite ), experts warn that the rise in participants within the informal economy poses a serious challenge to the system's viability. Data compiled by the National Statistics Institute (Inegi) indicate 27 percent of the economically active population are employed in the informal sector. The newspaper Reforma For the Mexican daily, see . The National Association to Promote Library and Information Services to Latinos and the Spanish-speaking, more commonly known as REFORMA reported that 11,564,000 people are not covered not covered Health care adjective Referring to a procedure, test or other health service to which a policy holder or insurance beneficiary is not entitled under the terms of the policy or payment system–eg, Medicare. Cf Covered. by IMSS since they work outside the formal economy. Equally troublesome is the fact that the informal sector is growing rapidly and if the pace of growth remains steady, in the year 2025 there will be more than 23 million people working "informally." This number would represent an estimated 39 percent of the economically active population, says Reforma. To provide social security coverage today for "retired" members of the informal sector would cost roughly 1.49 percent of the federal budget whereas the projected cost for 2025 would eat up 3.10 percent of the federal budget. Gabriel Martinez Martinez (märtē`nəs), city (1990 pop. 31,808), seat of Contra Costa co., W Calif., on Carquinez Strait between San Pablo and Suisun bays, in a farm area; inc. 1884. Its major industry is petroleum refining. , an investigator with the Interamerican Commission on Social Security, told Reforma that these figures are very critical, but so far the political debate has ignored them. "Countries such as the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Brazil and Chile have designed programs offering coverage for non-contributors to the social security system," Martinez said. "For this to happen here, certain regulations would have to be amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , but such reform has not been discussed so far." Martinez pointed out that existing regulations require workers to sign up for a package that provides complete social security protection, which is often beyond the means of members of the informal economy. "There should be allowances for people to select a package that only provides a pension," he told Reforma. Ricardo Cavazos, a former regional IMSS director, agreed with Martinez. He said the current debate has focused on fine-tuning and saving the existing system. This means members of the informal economy must either sign up voluntarily with IMSS or contract a private pension plan, and both of these options are unaffordable un·af·ford·a·ble adj. Too expensive: medical care that has become unaffordable for many. un , Cavazos said. IMSS projections for 2025 predict that 60 percent of Mexicans over 65 years of age will have neither a social security package nor a pension plan. [ILLUSTRATION OMITTED] |
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