Two bills seek to encourage the retirement of retired officials from the Panamanian state payroll

One of the proposals establishes four months of salary for officials with ten years of service, an amount that increases progressively until reaching ten months for those who accumulate 25 years or more. (Lex Consulting) The National Assembly began discussing two bills that seek to incentivize the voluntary departure of retired public servants or those entitled to a pension, through economic compensation linked to their years of service. The initiatives also aim to open spaces for generational turnover within State institutions. The Labor, Health and Social Development subcommittee, chaired by Representative Janine Prado, held the first day of consultations on bills 718 and 711. Participating in the discussion were representatives of the Ministry of Economy and Finance, the Social Security Fund, and the Ministry of Labor and Labor Development. Although both bills seek to incentivize retirement, they establish different formulas for calculating how much officials would receive. Bill 718, originally promoted by Javier Sucre, proposes a program aimed at pensioners and retirees, while 711 proposes a national generational turnover policy. Bill 718 would allow those with at least five continuous years of creditable service in the public administration who are pensioners or retirees of the Social Security Fund to join the program. In addition, they must submit their voluntary resignation with a minimum of 30 days' notice. The bills under consideration by the Assembly seek to ensure that the departure of experienced officials occurs voluntarily, while institutions evaluate which positions should be maintained, transformed, or filled by new professional profiles. (Illustrative Image Infobae) The compensation provided for in this initiative would be one month of salary for each year worked, up to a maximum of 12 months, taking as a reference the ten best years of salary in public service. In no case could the incentive exceed $100,000. The payment would also have a favorable tax condition: it would be exempt from Income Tax. Upon leaving the position, the official would retain the right to receive the seniority bonus, vacation, and other corresponding benefits, regardless of the incentive for joining the program. Those who receive this compensation would be barred from being hired again by any State institution, whether through a permanent, temporary position, or professional services. The proposal also establishes a list of officials and activities that would be excluded from the program. Among the exceptions are members of the Public Force, officials of the Judicial Branch and the Public Prosecutor's Office, popularly elected positions, Foreign Service personnel, and permanent firefighters. Essential health and State administration positions would also be excluded, as well as municipal and temporary employees. Officials who join under bill 718 would receive, upon ending their employment relationship, the seniority bonus, accrued and proportional vacation, as well as the administrative career bonus and the corresponding portion of the thirteenth month. (Canva) Bill 711 presents a different scheme. To participate, the official must be active, have acquired the right to an old-age pension, and prove at least ten years of public service, continuous or discontinuous. The retirement would have to occur through a free, express, and voluntary resignation. Its scale begins with four months of salary for those who prove ten years of service. The compensation increases to six months at 15 years, eight months at 20 years, and ten months of pay for those who accumulate 25 years or more. For seniority levels between those ranges, the bill proposes adding the equivalent of 40% of a monthly salary for each additional full year. The benefit could never exceed ten months of pay and would use as a reference the salary earned 12 months before requesting retirement. Augusto Palacios's proposal goes beyond delivering compensation and proposes turning generational turnover into a permanent State policy. Each institution would have to prepare an annual plan identifying positions, staffing needs, potential beneficiaries, and the budgetary resources needed to finance the departures. Members of the Public Force, officials of the Judicial Branch and the Public Prosecutor's Office, among other groups, could not join the program contemplated in bill 718, which also excludes certain positions considered essential for the State. EFE/ Bienvenido Velasco The vacancies would also not have to be automatically replaced. The bill establishes that each freed position must be evaluated before deciding whether it remains necessary, can be eliminated, merged, or transformed. When it corresponds to fill it again, the intention is to incorporate capabilities adjusted to the new institutional and technological needs. Regarding budgetary matters, each entity would have to include the resources destined for the bonuses in its annual draft budget, previously estimating how many officials could join. The State would guarantee availability through the General Budget, while the approved appropriations would have exclusive use for these payments. Another difference appears in the possibility of returning to the public sector. Bill 711 establishes that whoever receives the incentive may not be linked again as a public servant, although it leaves open subsequent contracting for State consultancies. Bill 718, on the other hand, also prohibits contracting through professional services. The initiatives now enter a consultation phase in which the subcommittee will receive observations from interested institutions and organizations before advancing in their discussion. The representatives will have to define whether both proposals remain separate or how their differences on requirements, amounts, financing, and future hiring are harmonized.