As of the beginning of 2017, those over the age of 65 make up approximately 11.7 per cent of the population in Cuba, and by 2050 this group is expected to grow to 27 per cent. The Government of the Republic of Cuba has a long history of social pension schemes dating back to 1963 and more recently broadened the legal framework to protect the right of older persons to income security in 2008 and 2011, thus strengthening an existing Social Security Pension Scheme (SSPS). The National Social Security Institute is responsible for the administration and management of funds that form the SSPS.
The SSPS is a mandatory and contributory pension scheme available to all persons employed by the State, those employed by co-operatives, independent farmers, and legal reform in 2011 extended the scheme to self-employed persons. The SSPS is available to women over the age of 60 and men over the age of 65. Claimants who contributed for 30 years are entitled to a minimum monthly payment of CUP 200, or USD 200, and up to 60 per cent of the claimant’s average top five earning years within 15 years before retirement. Monthly payments increase by an additional 2 per cent for each year worked past retirement. Older persons also have the right to seek re-employment without losing their pension. Claimants who contributed for less than 30 years are entitled to receive monthly payments calculated as above at 40 per cent. In order to ensure an adequate safety net monthly benefits are also available to those who do not qualify for the SSPS, or are partially or fully disabled. The SPSS reaches approximately 87 per cent of older persons in Cuba, achieving one of the highest coverage rates in Latin America.
The Government of Cuba has been working toward basic income security of older persons since the 1960s. More recent efforts to improve the extent of coverage and implement a rights-based approach illustrate a strong commitment to the social protection floor. The Government has also made important steps to increase the level of payments four times between 1989 and 2010. Thus, Cuba’s SPSS continues to move toward the creation of a social protection floor for all older persons.
Further Reading:
- Carmelo Mesa-Lago (2012). Social Protection Systems in Latin America and the Carribean: Cuba. United Nations Economic Commission for Latin America and the Carribean, Santiago. Accessed from http://www.cepal.org/en/publications/social-protection-systems-latin-america-and-caribbean-cuba on December 2016.