Federal Social Insurance Council
Argentina
Americas

Ensuring contribution collection and compliance happens in the same timeframe as paying out benefits: A necessity in a context of inflation

Implementation year
2022

The Santa Fe Municipal Fund (Caja Municipal de la ciudad de Santa Fe) of Argentina’s Federal Social Insurance Council (Consejo Federal de Previsión Social – COFEPRES) is a social security body created in 1904 by Ordinance 554. It was the first of its kind in the country and is an autarchic entity staffed by civil servants and employees of the Municipality of Santa Fe. The system is public and works on a pay-as-you-go basis, i.e., personal and employer contributions from active members are used to pay the passive members pension benefits linked to retirement, disabilities, old age, and death.

There are 51 participating municipalities and communes in the province, all of which have signed retirement scheme adherence and reciprocity agreements with the Municipal Fund, which requires provincial co-participation. Contributions used to arrive from these organizations with almost a month’s delay, while the Santa Fe Municipality sends out payments immediately. This good practice was implemented to ensure that the collection of contributions and payment of benefits happen in the same timeframe.

Topic:
Governance and administration
Contribution collection and compliance