Act 18.395, which came into effect in Uruguay in July 2009, makes the conditions governing eligibility for retirement pensions more flexible. This act introduces a number of changes to the measures laid down in Act 16.713 (which came into effect in April 1996) establishing a mixed insurance scheme for disability, old age and survivors' pensions combining a pay-as-you-go system based on intergenerational solidarity and a capitalisation based system based on individual savings.

Act 18.395 introduces various changes in the mixed scheme, creating more flexible conditions for the allocation of retirement and disability pensions and focussing in particular on the situation of women with children and unemployed workers aged over 58.

Act 18.395 reduces the number of years of activity required to qualify for a retirement pension from 35 to 30, while maintaining the same age limit (60 for both men and women).

Women will be credited with 1 additional year of work per child, whether their own or adopted, up to a maximum of 5. This benefit can be used to supplement insufficient working years or to increase the amount of the pension.

Workers with more than 30 years of activity to their credit will receive an increase of 1 percent of the basic pension for each year of service over 30, up to a maximum of 35.

A graduated scale provides access to old age pensions at age 65. This scale is based on a combination of age and number of years of activity:

- 70 years of age and 15 years of service, is already covered by Act 16.713;
- 69 years of age and 17 years of service, came into effect in July 2009;
- 68 years of age and 19 years of service, came into effect in July 2009;
- 67 years of age and 21 years of service, will come into effect in January 2010;
- 66 years of age and 23 years of service, will come into effect in January 2010;
- 65 years of age and 25 years of service, will come into effect in January 2010;

Act 18.395 also introduces changes in the conditions governing eligibility for full disability pensions and temporary allowances for partial disability. In both cases, the requirement concerning activity in the 6 months prior to the disability and the requirement that the disability must occur within two years of cessation of the activity have been abolished. The other requirements remain valid and an additional condition has been introduced: claimants must have been resident in Uruguay as from cessation of the activity until the onset of the disability.

Under Act 18.395, retirement as a result of total work incapacity may be the result of any one of the following:

- Total and permanent incapacity for all work, occurring during a period of employment or compensated unemployment, whatever the reason, in the presence of at least 2 years of recognised employment. Previously, 6 months of employment was required prior to the incapacity. A minimum of only 6 months of recognised employment (instead of 2 years) will be required for workers under 25 years of age.

- Total and permanent incapacity for all work caused by or occurring during work, whatever the period of employment.

- Total and permanent incapacity for all work occurring after cessation of activity or following a period of compensated unemployment, whatever the reason for the disability, with a minimum of ten years of recognized employment, provided that the beneficiary has remained resident in the country since the date of retirement and does not receive any other pension or retirement benefit apart from those provided under the retirement scheme based on individual savings. Previously, a disability was recognised only if it occurred within 2 years of cessation of activity or a period of compensated unemployment.

Finally, Act 18.395 introduces a benefit known as the "special compensated unemployment subsidy" ("subsidio especial de inactividad compensada") which provides protection for unemployed workers at least 58 years of age with more than 28 years of registered employment.
Since this benefit is comprised of a subsidy, the beneficiary contributes on the basis of it and the corresponding period is taken into account for pension purposes.

It is important to note that those involved are very close to retirement, but their unemployed status creates difficulties for them and their age makes it difficult to find further employment. This benefit is designed to provide support for such individuals during the period in question, which can last up to two years, or until the beneficiary qualifies for retirement. Payment of the benefit for the maximum period means that when it expires, beneficiaries meet the statutory eligibility requirements for a normal pension.

源: http://www.parlamento.gub.uy/leyes/AccesoTextoLey.asp?Ley=18395; http://www.parlamento.gub.uy/leyes/AccesoTextoLey.asp?Ley=16713

Reference: Ley 18.395: "BENEFICIOS JUBILATORIOS: FLEXIBILIZACIÓN DE LAS CONDICIONES DE ACCESO"; Ley 16.713: "SEGURIDAD SOCIAL: CREASE EL SISTEMA PREVISIONAL QUE SE BASA EN EL PRINCIPIO DE UNIVERSALIDAD".

Legislation date: 08.2008

Implementation date: 07.2009