ISSSTE will have serious financial problems by 2018.

MEXICO CITY, Oct 16, 2003 (El Economista/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- The deficit of the Social Security and Services Institute for State Workers (ISSSTE) to pay for the pension system is so large that State support will reach the huge sum of 837 billion pesos (US$74.1 billion) by 2018 unless a structural reform is implemented, said the director of the institution, Benjamin Gonzalez Roaro

In the face of the troubled panorama for the ISSSTE, the official said that the pension situation is a State problem that needs immediate action on the part of Congress.

"We need this issue to be considered that it must be the product of a rescue of the institute by public finances," said Gonzalez.

During his appearance before senators, Gonzalez surprised the chamber with his projections in the pension system and demanded a structural reform to resolve the deep-lying problems of the sector to guarantee viability in the future. He said the problem was the fact that the current system considers a working life of 32 years to cover the pension, when this period is only 25 years.

"The structural crisis reflects the exhaustion of the distribution system created under the demographic assumptions of 1959," said Gonzalez.

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