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New social security regimen for Cuban cooperative members with less state dependence

New social security regimen for Cuban cooperative members with less state dependence

The Cuban Council of State authorized a new Decree Law that establishes a brand-new social security program for workers in the Basic Units of Cooperative Production (UBPC), which will require greater performance from these entities and less dependence on the state budget.

The deputy director of the National Institute of Social Security (INASS), Haydeé Franco, talked about that the funding for this special program will be made by the shared contribution of the cooperative member and the cooperative unit, according to Cubadebate

” Cooperative members are going to contribute 6% of the contribution base picked by them and it depends on the cooperative to contribute 14%, which determines an overall contribution of 20%,” said Franco.

The selection of the contribution base require to be authorized by the basic assembly of the UBPC and will remain in correspondence with the advances, profits and other income received by the cooperative member, she defined.

Decree Law No. 5 of 2020 establishes that in order to guarantee the social security of employees it is mandatory to join the special regime, for which the cooperative will designate an individual who requires to register its members in the National Computer System Registry of Social Security and in the Taxpayers of the National Workplace of Tax Administration, the source revealed.

The guideline safeguards cooperative members in cases of disease or accident of typical or expert origin, maternity, overall problems and aging. In case of death, it safeguards their family.

The legal director of the Ministry of Labor and Social Security (MTSS), Yudelvis Álvarez, described in turn that the Decree Law will reduce the State’s involvement in moneying the social security of these workers, although it will guarantee the resources if necessary, according to the Agencia Cubana de Noticias news company.

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The brand-new legal norm, which will enter into force within 180 days, develops that the calculation of the pension by age is made by the average of the monthly contribution base of the last 15 fiscal year, the durations in which the cooperative member had the status of salaried employee, underwent another regular or was a member of the UBPC prior to the decree, will be taken into consideration in the contribution, according to the source.

The provisions in Law No. 105 On Social Security of December 27, 2008 develops that the computation will be used to the pensions of cooperative members who reach retirement age in the first 5 years after the entry into force of the policies or end up being totally disabled.

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