A/HRC/42/43/Add.1 single institution, the Social Security Bank, which was established under the 1967 Constitution.13 The system is administered by the Ministry of Labour and Social Security. It consists of the Social Insurance Bank, three parastatal funds, 14 and two retirement and pension services.15 47. Uruguay has reformed its social security and social protection system in recent years. Act No. 16713, adopted in 1995, put into effect a new mixed retirement pension system, administered by the Social Insurance Bank, which combines two mandatory components: an intergenerational solidarity retirement scheme based on distribution, and a compulsory individual savings retirement scheme based on individual capitalization. 48. The Social Security Bank is the State’s main social security institution. It provides technical assistance in the form of professional advice, and funding for specific projects, especially infrastructure projects for older persons’ homes, associations of retirees and pensioners and senior citizens’ clubs. The Social Security Bank grants retirees and pensioners with low incomes the usufruct of properties that it owns (A/HRC/WG.6/5/URY/1, para. 73). 49. Uruguay also has an Equality Plan which created an old-age allowance for persons between 65 and 70 years of age living in extreme poverty who lack other social security benefits. In addition, it reintroduced the old-age grant for persons above the age of 70. In 2009, the minimum pension was 150 per cent higher than its 2005 value (ibid.). 50. The demographic change is increasingly putting pressure on the pension system. The old-age dependency ratio, defined as the population aged 60 and above over the workingage population, is expected to grow from less than 33 per cent in 2015 to 50 per cent in 2050, and close to 77 per cent in 2100.16 51. The Uruguayan pension system is one of the oldest in Latin America. It has evolved from a “pure” pay-as-you-go system to a mixed system which includes a pay-as-you-go, defined-benefit component and an individually funded, defined-contribution component (Act No. 16713). The pay-as-you-go pillar is administered by the Social Security Bank for most contributors. In addition, there are five separate systems for banking sector employees, university professionals, public notaries, the military and the police. The second pillar is managed by private pension fund administrators under the supervision of the Central Bank. Above a certain income threshold, workers can voluntarily contribute additional savings. The system also includes a non-contributing older persons and disability pension programme.17 52. The common retirement pension is paid to workers aged 60 or above who have accumulated at least 30 years of contributions. 18 The old-age pension can be paid to workers who do not qualify for the common retirement pension and are aged 65 and above and have 25 years of contributions. The amount under the pay-as-you-go pillar is equal to 50 per cent of the basic pensionable salary plus 1 per cent for each year of employment exceeding the required minimum number of years of service (25 years at age 65, 23 years at age 66, 21 years at age 67, 19 years at age 68, 17 years at age 69, and 15 years at age 70), with a maximum of 14 per cent. Complete disability and temporary disability pensions are equal to 65 per cent of the basic pensionable salary. 19 53. Passive pension coverage in Uruguay is very high. The proportion of people aged 65 and above who receive a pension exceeds 90 per cent. However, only about 7 per cent of 13 14 15 16 17 18 19 Observatorio Iberoamericano de Protección a la Vejez: Capítulo Colombia, “Estudio comparado de los países seleccionados y Colombia: valoración de Uruguay – marco normativo sobre los mecanismos de protección del adulto mayor y buenas prácticas con nueva tecnología”, 2017, p. 6. The Retirement and Pensions Bank Fund, the Notary Social Security Fund, and the University Professionals Fund. The Military Fund (Armed Forces Retirements and Pensions) and the Police Fund. IMF, Uruguay: Selected Issues, p. 49. Ibid., p. 50. Ibid., p. 53. Ibid. 9