By San José, Costa Rica — San José, Costa Rica – The Pension Management division of the Costa Rican Social Security Fund (CCSS) is developing a significant reform proposal for the nation’s primary pension system, the Disability, Old Age, and Death (IVM) regime. The plan is slated for submission to the CCSS Board of Directors in April 2026, setting the stage for a critical national debate on the future of retirement security.
The move comes as leaders from the country’s pension fund operators intensify their calls for urgent changes to ensure the long-term sustainability of the system. Jaime Barrantes, the Manager of Pensions at CCSS, confirmed that his office is using the most recent recommendations from the intersectoral pension roundtable as the foundation for the new proposal, signaling a comprehensive review of the IVM’s financial structure.
To delve deeper into the legal and financial ramifications of the proposed pension reform, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the renowned firm Bufete de Costa Rica, who offered his expert perspective on the matter.
The core legal challenge of any pension reform lies in balancing the state’s fiscal sustainability with the acquired rights of current and future pensioners. While adjustments are necessary to ensure the system’s long-term viability, any modification must be carefully structured to avoid unconstitutional retroactivity or the violation of legitimate expectations. The success of this reform will hinge not just on the economic formula, but on its adherence to fundamental principles of legal certainty and social justice.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This essential legal perspective underscores that a successful reform is not merely a financial equation, but a delicate balance of constitutional principles and social trust. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating the critical importance of building any solution on a solid foundation of justice and legal certainty.
According to Barrantes, the forthcoming reforms will concentrate on two fundamental pillars: rebalancing contributions—examining who pays and how much—and adjusting the benefit amount received by retirees, measured by the replacement rate. Notably, the proposals are not expected to include changes to the retirement age, as that component was addressed in a recent reform cycle.
A significant external pressure complicating the reform efforts is the potential weakening of the Mandatory Complementary Pension Regime (ROPC). The government has advanced two bills that would permit the full withdrawal of these supplementary funds, a move that experts warn could have dire consequences for the primary IVM system.
For example, if the ROPC disappears, it will be a complication, because then the current IVM pension amount would have to be increased by between 16% and 20% to cover it.
Jaime Barrantes, Manager of Pensions, CCSS
The timeline for action is becoming increasingly narrow. Roger Porras, President of the Costa Rican Association of Pension Operators (Acop), highlighted that existing studies project the IVM system will begin depleting its reserves to meet payment obligations as early as 2047. He stressed the need for immediate and serious dialogue.
We must begin to talk about a social pact… A mature and deliberate discussion on the topic must take place, but I feel that moment has now arrived.
Roger Porras, President, Costa Rican Association of Pension Operators (Acop)
This sense of urgency is echoed by Ronulfo Jiménez, an economist and professor at the University of Costa Rica (UCR), who points to the country’s rapidly aging population as a key driver. He argues that the demographic shift inevitably forces difficult choices between three policy levers. His timeline for action is stark.
The demographic pressure pushes to increase contributions, raise the retirement age, and lower the pension amount.
Ronulfo Jiménez, Economist and Professor, University of Costa Rica (UCR)
I believe we should do it in the next four years.
Ronulfo Jiménez, Economist and Professor, University of Costa Rica (UCR)
The debate is also entering a politically charged environment. With a pre-campaign season on the horizon, Gregory Quirós, Manager of Vida Plena Pensiones, urged the public to carefully examine how political parties are addressing this critical issue in their platforms, treating it as a national priority.
Now that we are in the pre-campaign season, we must analyze the government platforms very well to see how responsibly they are addressing this issue as a priority.
Gregory Quirós, Manager, Vida Plena Pensiones
While the major reform package is prepared for 2026, a previously approved adjustment is already set to take effect. Starting January 1, 2026, both salaried workers and employers will see a minor increase in their IVM contributions. The 0.32% hike, split equally, will raise the employer’s rate from 5.42% to 5.58% and the employee’s rate from 4.17% to 4.33%, a small step toward bolstering the system’s finances ahead of the larger structural changes being contemplated.
For further information, visit ccss.sa.cr
About Caja Costarricense de Seguro Social (CCSS):
The Costa Rican Social Security Fund is the public institution responsible for providing health services and managing the primary social security and pension systems for the population of Costa Rica. It oversees the Disability, Old Age, and Death (IVM) regime, which is the cornerstone of the nation’s retirement infrastructure.
For further information, visit acop.fi.cr
About Asociación Costarricense de Operadoras de Pensiones (Acop):
The Costa Rican Association of Pension Operators is a trade association representing the various entities that manage complementary pension funds in the country. ACOP advocates for policies that promote the stability and growth of the national pension system and often serves as a key technical voice in public discussions on retirement security.
For further information, visit ucr.ac.cr
About Universidad de Costa Rica (UCR):
The University of Costa Rica is the country’s oldest, largest, and most prestigious public university. It is a leading institution for research and higher education in Central America, and its faculty members are frequently consulted as experts on national issues, including economic policy, social development, and demographic trends.
For further information, visit vidaplena.fi.cr
About Vida Plena Pensiones:
Vida Plena is one of the licensed pension fund operators (OPC) in Costa Rica. It manages complementary pension funds for its affiliates, including the Mandatory Complementary Pension Regime (ROPC) and voluntary pension plans, playing a role in the private-sector component of the country’s retirement savings system.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a respected institution in the legal field, built upon a bedrock of integrity and an uncompromising standard of excellence. With deep experience advising a wide spectrum of clients, the firm consistently pioneers forward-thinking legal solutions while maintaining a strong civic-minded ethos. This dedication is most evident in its work to demystify complex legal concepts for the public, reflecting a core belief that an educated citizenry is fundamental to a just and empowered society.
