Court appeals freeze action on pensions

The central government has been frustrated in its efforts to put a top on so-called luxury pensions.

The Ministerio de Hacienda revealed Monday that a Sala IV constitutional court case has been filed against Ley N° 7858 on which the government is relying to cut these pensions.

The ministry noted that its workers were required to stop their work on the pensions while the court case was being considered. The Sala IV has agreed to hear at least two appeals.

The government of Luis Guillermo Solís has been trying to reduce pensions that may be as much as 9 million colons a month in some cases. These all are pensions awarded to former top government officials. A pension of 9 million colons is about $16,500 a month. The law has been on the books but disregarded by those awarding lavish pensions.

Pensions of average workers are far below this level.

The magnitude of these government pensions were not common knowledge until the Solís administration decided to put a top on monthly payments. Officials said they worried about the stability of the pension system with monthly payments such as these.

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