"Monthly Pension of 1.26 Million Won for Former Presidents"... 'This Country' Moves to Abolish Lavish Ex-Presidents' Pensions Amid Criticism Over Taxpayer-Funded Luxury

Costa Rica Moves to Abolish Former Presidents' Pensions
Current President: "I, too, am not an exception" -- Waives Benefits

The Costa Rican government has submitted a bill to parliament to abolish the special lifelong pension program for former presidents. The legislation calls for eliminating the former presidents' pension—about 4 million colones (approximately 1.26 million won) per month—without any grace period. This move comes amid mounting criticism over the tens of billions of won in pensions being paid to former presidents, even though they did not make any contributions, while ordinary households survive on less than 100,000 colones (around 310,000 won) a month in subsistence pensions.

Reference photo to aid understanding of the article. Getty Images

According to Spanish-language media such as Infobae on the 17th (local time), Costa Rican President Laura Fernandez announced in a national address the previous day that she has submitted the "Zero Tolerance for Former Presidents’ Lavish Pensions Bill" to parliament.

According to the Office of the President, former presidents of Costa Rica receive a monthly pension of about 4 million colones after leaving office. This amount corresponds to approximately 1.26 million won in Korean currency. As of July this year, the cumulative amount of pension paid to the seven former presidents receiving it totaled 5,469 million colones, which is about 17 billion won.

Ordinary citizens receive less than 310,000 won per month... Top recipients get as much as 3.1 billion won

The individual who has received the most is former President Rafael Angel Calderon, who served from 1990 to 1994. To date, he has collected 972 million colones, or about 3.06 billion won. Next is former President Jose Maria Figueres, who has received 936 million colones (about 2.95 billion won), followed by former President Miguel Angel Rodriguez, who received 906 million colones (about 2.83 billion won).

The problem lies in the fact that some former presidents began receiving pensions at a relatively young age, even without ever making any pension contributions. Additionally, there have been cases where different types of pensions—up to three—were collected simultaneously under various pretenses.

President Fernandez strongly criticized the program, stating, "While thousands of ordinary households are waiting for subsistence pensions of less than 100,000 colones (about 310,000 won) a month, taxpayer money—earned through the sweat of the people—has been used to support the lavish lifestyles of former presidents who never even paid contributions."

Current President also waives benefits... "I, too, am not an exception"

Notably, the new bill includes President Fernandez herself as a subject. If the current system were to remain in place, President Fernandez would also be eligible to receive the former presidents' pension after her term. However, if the bill passes, she, too, will be excluded from receiving the special pension.

Laura Fernandez, President of Costa Rica. Photo by AFP Yonhap News

She stated, "I, too, am not an exception. It is only fair for every citizen to receive only as much pension as they have actually contributed," adding, "You can always hold me accountable and say anything you want about me, but you will never be able to say I abandoned principles or that my words and actions do not match."

General pension to replace 'Presidential Special Pension'

The government's reform direction calls for abolishing the special pension program applicable only to former presidents and including them in the same pension scheme as ordinary citizens.

The Office of the President explained that even if someone serves four years as president, as long as they have paid into the general pension system covering disability, old age, and death (IVM) during their working life, they will not receive a separate presidential pension, but will instead receive a pension according to the IVM eligibility criteria.

In other words, the policy abolishes the automatic payment of a separate lifelong pension simply for having served as president, applying instead the standard requirements for pension eligibility, such as age and contribution period.

Currently, out of eight former presidents in Costa Rica who are eligible to receive pensions, seven are receiving them, while former President Carlos Alvarado has voluntarily declined to collect his pension.

Previous abolition attempts failed... Parliamentary approval remains uncertain

However, the submission of the bill alone does not guarantee the abolition of the special pension. It must ultimately be reviewed and approved by Costa Rica's parliament. Infobae analyzed that similar legislative attempts had failed in the past due to parliamentary resistance, casting uncertainty on whether this bill will pass.

While one side argues for upholding the unique nature of the presidency and ensuring protection after leaving office, others contend that providing separate lifelong benefits through citizens’ contributions or tax money is fundamentally unfair. Against this backdrop, President Fernandez plans to hold an official press conference on the 19th to explain the detailed implementation plans for the bill.

This content was produced with the assistance of AI translation services.