government

CSS has revenue increase

The Caja de Seguro Social (CSS) saw its income increase almost 15 percent in 2007 due to the country's growing economy.

With more people working and wages going up, the agency’s revenue has increased. The agency has also benefited from reforms to the system which has increased contributions.

But the agency's Invalidez, Vejez y Muerte (IVM) program continued to operate at a deficit. The program, which had a shortfall of $62 million in 2006, was $71 million in the red last year.

Eduardo Carrasquilla, the CSS director of revenue, explained that the agency will receive a payment of $75 million from the government. That money will come from a fund established by the state to cover budgetary shortfalls.

The revenue director noted that, of the deficit, $13 million was due to a mid-year increase in benefits for some pensioners, which could not be budgeted for. He said that without that adjustment, the fund's shortfall would have been $58 million. This is a sign that the program’s budgetary situation is improving.

While that program is running in the red, the agency’s maternity program had a $100 million surplus last year.

But Carlos Abadía, a specialist with this program, said that about half of that surplus was in one-time payments that are not expected to be repeated. He added that reforms to the program have been responsible for it operating much more efficiently.