The law passed in February 2022 defined how to proceed in the event of a major mutual fund closing for reasons of non-viability, establishing incorporation criteria for members and employees within a new structure. In accordance with the legislative criteria, the Catholic Workers’ Circle of the Uruguay Mutual Fund (Círculo Católico de Obreros del Uruguay Mutualista) was one of the institutions included in this process.
Between February and March, some 18,000 new members joined the fund. Internal multidisciplinary teams worked alongside other stakeholders, especially the Ministry of Public Health, to mitigate the risks associated with the dramatic change brought about by an external event with social and political repercussions. Three-way negotiations were held regarding the incorporation of employees, in accordance with current legislation, agreements signed and, in our case, the ISSA Guidelines on Good Governance, the ISSA Guidelines on the Promotion of Sustainable Employment and the ISSA Guidelines on Human Resource Management in Social Security Administration. The process also involved the acquisition of infrastructure belonging to the former mutual fund. Good governance, driven by senior management in coordination with the development team and management and operations officers, was key to achieving the objectives set with regard to members, beneficiaries, employees, governmental authorities and the community at large.