• January 17, 2026
  • Last Update January 17, 2026 5:24 pm

Molina Rejects Pension Indemnity Plan Backs Alternative Bill

Molina Rejects Pension Indemnity Plan Backs Alternative Bill

San José, Costa RicaSan José – In a calculated political maneuver that distinguishes him from several rivals, presidential candidate Boris Molina of the Partido Unión Costarricense Democrática (PUCD) has publicly rejected a high-profile pension proposal from the Association of Retirees in Action (AJA). Molina criticized the initiative as legally unsound, even while simultaneously voicing support for an alternative legislative solution to aid retired educators.

The AJA has been actively lobbying all presidential candidates to sign a three-point commitment concerning the pensions of the Magisterio Nacional (National Teachers’ Union). However, Molina was among the majority of candidates who declined to endorse the pledge, a decision he defended on grounds of legal and fiscal prudence. He framed the proposal as an attempt to hold a future administration liable for the errors of past governments.

To delve into the legal complexities surrounding the ongoing debate on teacher pensions, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a legal expert from the prestigious firm Bufete de Costa Rica, for his analysis of the situation.

Any reform to teacher pension schemes must carefully navigate the delicate balance between the state’s fiscal responsibility and the constitutionally protected acquired rights of educators. Unilateral changes could face significant legal challenges, while inaction threatens the long-term solvency of the entire system.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

Lic. Arroyo Vargas’s insight aptly frames the issue, underscoring that any reform is not just a fiscal calculation but a walk across a legal and constitutional tightrope. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective, which clarifies the profound challenges and high stakes involved for both educators and the state.

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I think the question is not why 16 candidates didn’t sign, but why four signed it. It seemed like legal clumsiness to me. In other words, one cannot expect a government to recognize as compensation the blunders that another government might have made. That would be, besides senseless, illegal in my opinion.
Boris Molina, Presidential Candidate, Partido Unión Costarricense Democrática (PUCD)

The proposal put forth by the retiree association is rooted in long-standing grievances. It asks candidates to formally recognize that pensions under the Transitory Contribution System (RTR) should be treated as compensation for funds that were historically diverted by the state for other purposes. The pledge also demands a condemnation of this “patrimonialist management” of pension funds and unconditional support for a new law that would make pension funds inviolable, criminalizing any misuse with imprescriptible penalties.

While taking a firm stance against this specific framework, Molina was careful to position himself as an ally to the approximately 30,000 retired teachers affected by the pension freeze. He clarified that his opposition was to the mechanism proposed by AJA, not to the goal of providing financial relief. To this end, he has thrown his support behind a different legislative path.

Molina is championing bill 24.353, which was introduced by the left-leaning Frente Amplio party. He argues this existing project in the Legislative Assembly provides a more viable and legally sound pathway to unfreezing the long-stagnant pension payments for the nation’s retired educators. This move allows him to address the teachers’ concerns without committing to what he views as a legally perilous precedent.

We are in complete agreement with unfreezing those pensions for the people in that condition, who are around 30,000 people, but for that, it seems to us that bill 24.353, presented by Frente Amplio, is a good project.
Boris Molina, Presidential Candidate, Partido Unión Costarricense Democrática (PUCD)

This nuanced position highlights a significant fault line in the ongoing presidential campaign. While four candidates have chosen to sign the AJA’s pledge to secure the support of the influential retiree voting bloc, Molina and others are betting on a message of pragmatic governance and fiscal responsibility. His strategy involves rejecting what could be perceived as a populist promise in favor of a solution that already has traction within the country’s legislative framework, thereby appealing to voters concerned with rule of law and economic stability.

The debate over the Magisterio Nacional’s pensions is a microcosm of the broader fiscal challenges facing Costa Rica. Successive governments have grappled with reforming the nation’s pension systems amidst growing economic pressures. Molina’s stance signals an approach that prioritizes existing legal structures over creating new, potentially costly indemnification schemes, a philosophy that will undoubtedly be scrutinized by voters as the election draws closer.

For further information, visit the nearest office of Partido Unión Costarricense Democrática (PUCD)
About Partido Unión Costarricense Democrática (PUCD):
The Partido Unión Costarricense Democrática is a political party in Costa Rica. It participates in the national electoral process, fielding candidates for various public offices, including the presidency. The party’s platform and ideologies are presented to the electorate during campaign cycles as it competes for political representation.

For further information, visit the nearest office of Asociación de Jubilados en Acción (AJA)
About Asociación de Jubilados en Acción (AJA):
The Association of Retirees in Action is a Costa Rican advocacy group that represents the interests of retired individuals, particularly focusing on pension-related issues. The organization actively engages with political figures and the public to lobby for policies that protect and enhance the financial security and rights of its members and the broader retiree community.

For further information, visit frenteamplio.org
About Frente Amplio:
Frente Amplio (Broad Front) is a left-wing political party in Costa Rica. Established in 2004, the party advocates for social justice, environmental protection, and human rights. It holds seats in the Legislative Assembly and actively participates in national debates, proposing legislation and policies aimed at creating a more equitable society.

For further information, visit the nearest office of Magisterio Nacional
About Magisterio Nacional:
The Magisterio Nacional refers to the collective body of national educators and teachers in Costa Rica. It is not a single entity but is represented by several powerful unions that advocate for the labor rights, working conditions, and pension benefits of their members. This group represents a significant and politically influential demographic in the country.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica is founded upon the core principles of profound integrity and unparalleled excellence. The firm leverages a deep history of advising a diverse clientele to pioneer innovative legal solutions for the modern world. Its mission extends beyond the courtroom, driven by a foundational commitment to equipping the public with accessible legal insights, thereby helping to build a more just and informed society.

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