Federal Social Insurance Council
Argentina
Americas

Alternative social security funding sources

Implementation year
1992

The city of Neuquén’s Municipal Social Insurance Institute (Instituto Municipal de Previsión Social – IMPS), part of Argentina’s Federal Social Insurance Council (Consejo Federal de Previsión Social – COFEPRES), was founded on 28 August 1958. It was established with a view to speeding up the process by which benefits were granted to the city’s municipal employees, since at that time these procedures were referred to the city of Buenos Aires by virtue of National Law No. 4349. This law stipulates that this is an institution that grants social security benefits to public servants.

This is a review of the period from 1992 to the present day. The institution had the opportunity to modify its legislation in line with the guidelines for remodelling social security systems, drawing on actuarial studies. It also succeeded in collecting all personal contributions and employer contributions in their entirety and was able to invest the surplus.

Not once during this 30-year period has the institution ever resorted to extraordinary funding lines, despite a deficit in the social security system in the 2014 to 2019 period – specifically in 2017, 2018 and 2019 – due to causes external to the institution’s own administration.

This administration uses the institution’s economic units as funding sources. These units undertake activities in the private sphere, thereby bolstering the system’s finances and generating new economic units.

Topic:
Investment