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Ecuador President Palacio Partially Vetoes Pension Bill
By Mercedes Alvaro, Wall Street Journal
July 21, 2005
President Alfredo Palacio late Thursday partially vetoed a social security reform approved by the Congress on July 6 and asked lawmakers to withdraw pension reserve funds gradually.
Monthly contributions paid by employers finance the reserve funds. That money is added to pensions and other benefits given to employees when they retire.
In his veto, Palacio told Congress that as of September, he wanted workers who would be given less than $1,500 from the pension reserve fund to receive their money in two stages.
Those receiving more than $1,500 would receive their money according to a special schedule that will be published in February, 2006.
According to preliminary data, more than 1.5 million people who paid into the retirement fund would receive money only until next year.
The bill approved by Congress on July 6 called for returning $735 million in pension reserve funds to all active workers within 90 days.
Congress has 30 days to respond to the veto. It would take 67 out of 100 votes to override the president's veto.
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