30% annual increases in luxury pensions eliminated.

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The Constitutional Chamber supports the elimination of the 30% annual increases that the beneficiaries of the Treasury-Deputies regime had when resolving the accumulated unconstitutional actions against the laws that imposed taxes on luxury pensions.

“Today the Constitutional Chamber, resolving more than 40 actions that prevailed, puts an end to a debate that the country has had and that has angered many Costa Ricans, which is the debate on so-called luxury pensions,” said the president, who added that This action reaffirms that they can have a cap and a solidarity contribution of up to 50%.

“I celebrate this decision and this message of balance, also of solidarity, that is sent today to the Costa Rican people. A struggle that many of us have participated in in recent years and that with these rulings are made concrete ”, said the president.

Alvarado has maintained a constant struggle to cut luxury pensions, not only as president of the country, but also since he served as Minister of Labor in 2014-2018, when he argued at that time that the magistrates should not only take into account legal criteria for cutting pensions, but also economic criteria.

On the other hand, in April of this year, the president presented an aid and appeared to ask the magistrates for caps on luxury pensions, before the Constitutional Chamber.

Since May 2018 the Government of the Republic has implemented a series of measures, guidelines and laws that have reflected a clear commitment to austerity and a strict control of spending to solve the problem of public finances.

An example of this is the approval of Law 9,635, Law for the Strengthening of Public Finances, where major changes were established in favor of the consolidation of public finances, in the same way, there have been reductions to the extraordinary budget of up to ₡ 404,438, 9 million.

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