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Venezuela
Current direction of social security
Under the prior administration,
legislation was created to privatise old
age income, health insurance, and
other social security benefits similar to
those in Chile and Colombia. With the
election of President Chávez and the
adoption of a new constitution, the
social security reform was blocked.
After weeks of analysis and debate,
the direction reform is taking is
becoming clearer, with the current
timetable indicating that reforms will
be implemented by the end of 2001.
Healthcare
National health care
and occupational disability will remain
public programs. Social security
healthcare payroll contributions would
be phased out over 10 years, with the
program to be financed from general
revenues. Private insurance and
prepaid healthcare plans would still be
allowed. Unlike Chile or Colombia,
where mandatory healthcare is often
provided via private entities, it is
expected that any reform would not
diminish the pressure for employer
sponsored healthcare programs.
Old age pension benefits
Old age
income protection would be delivered
in part via privately managed
individual accounts. A public solidarity
fund for care of the poor and a
guaranteed minimum pension is
planned financed by payroll
deductions. The levels of deductions
and the employer/employee split is
still to be decided.
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The news contained in the
Newsbriefs section of The
Multinational is drawn from the News and Issues section of the Watson Wyatt website.
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