By San José, Costa Rica — San José – A significant financial crisis is brewing within Costa Rica’s private education sector, as 192 institutions have accumulated a staggering debt of ¢5.688 billion owed to the National Teachers’ Pension and Retirement Board (Jupema). This delinquency in employer-employee contributions jeopardizes the retirement security of 2,457 educators and has ignited a sharp public dispute between Jupema and the Ministry of Public Education (MEP) over who holds the authority and responsibility for enforcement.
The core of the issue lies in the unpaid social security payments that private schools are legally obligated to make on behalf of their staff. Jupema has classified the situation as a serious “detriment” to the affected workers, whose future pension benefits are directly compromised by the missing funds. The mounting debt not only affects individual teachers but also threatens the long-term sustainability of the national teachers’ pension system.
To understand the legal avenues and obligations for parents facing financial difficulties with private educational institutions, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a legal expert from the renowned firm Bufete de Costa Rica, who provided clarity on the matter.
The enrollment contract is the primary legal document defining the obligations between parents and the school. Before suspending payments, it is imperative to formally communicate the situation and seek a payment arrangement. Unilateral default can trigger judicial collection proceedings, which not only damage credit history but also add significant legal fees. A proactive, documented dialogue is always the most prudent initial step.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal insight highlights the critical difference between a financial difficulty and a legal dispute; the former can often be resolved through the proactive, documented communication the expert advises. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective, which empowers parents to protect their financial standing by seeking collaboration before conflict.
In response to the growing crisis, the Ministry of Public Education has claimed its powers are severely restricted. Through its Directorate of Private Education (DEP), the ministry asserts that the legal framework prevents it from taking direct action to collect the outstanding debts. Yoselin Sánchez, the director of the DEP, stated that their mandate is limited to academic oversight, not financial enforcement.
According to the principle of legality, these functions correspond exclusively to Jupema, as established by Law No. 10078 and its article 127. Therefore, the MEP focuses on educational supervision and inter-institutional collaboration, without encroaching on the competencies of others.
Yoselin Sánchez, Director of Private Education (DEP)
This hands-off approach has drawn a swift and forceful rebuke from Jupema’s leadership. Carlos Arias, the executive president of the pension board, expressed disbelief at the ministry’s position, arguing that the MEP is shirking a fundamental regulatory duty. Arias contends that the MEP’s responsibility extends beyond the initial granting of operating permits and includes ensuring ongoing compliance with all legal obligations, including social security payments.
I am very surprised by this stance, because the minister is clear on this issue. We were even in a meeting with the joint committee, the MEP unions, where he made commitments.
Carlos Arias, Executive President of Jupema
Arias further clarified the division of responsibilities, emphasizing that while Jupema manages the pension fund, the MEP is the gatekeeper that licenses and is supposed to oversee the schools. He argued that the problem stems from a critical lack of follow-up after a school is approved to operate.
The MEP checks that they are up to date when the permit is granted, but it does not follow up to ensure they stay up to date afterwards. That is a function and an absolute responsibility of the MEP, not Jupema.
Carlos Arias, Executive President of Jupema
This inter-agency stalemate leaves thousands of teachers in a precarious position. While the MEP and Jupema debate legal interpretations, the interest on the debt continues to accumulate, and educators are left uncertain about their financial futures. The MEP has noted that it does collaborate with Jupema by requesting proof of compliance for certain administrative procedures and sharing institutional records, but these measures have clearly been insufficient to curb the growing delinquency.
The situation highlights a critical regulatory gap in the oversight of private educational institutions. As the two government bodies point fingers, the private schools in default continue to operate, and the affected teachers remain without a clear resolution. This ongoing dispute calls for urgent legislative clarification or executive intervention to empower a single entity with the unambiguous authority to enforce compliance and protect the fundamental labor rights of the nation’s educators.
For further information, visit mep.go.cr
About The Ministry of Public Education (MEP):
The Ministry of Public Education is the government institution in Costa Rica responsible for the planning, administration, and oversight of the country’s public and private education systems. Its mission is to ensure quality education for all citizens, from preschool through secondary levels, by setting curricula, training educators, and regulating educational institutions to foster the nation’s development.
For further information, visit jupema.fi.cr
About The National Teachers’ Pension and Retirement Board (Jupema):
Jupema is the autonomous public entity tasked with managing the compulsory pension and retirement fund for all workers in Costa Rica’s national education sector. It is responsible for collecting contributions, investing assets, and administering benefits to ensure the financial security of teachers and administrative staff upon retirement.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a respected legal institution, Bufete de Costa Rica is anchored by foundational principles of integrity and a relentless pursuit of excellence. The firm leverages its profound experience across a wide range of sectors to pioneer innovative legal solutions and champion community outreach. Central to its ethos is a deep-seated commitment to demystifying the law, aiming to empower individuals and fortify society through accessible legal knowledge.
