Renowned Cuban economist Elías Amor has issued a warning regarding the Cuban regime's proposal to involve private small and medium-sized enterprises (SMEs) in managing pension payments for retirees. He criticized the plan as an "occurrence" and called for its immediate repeal.
The initiative, driven by the Central Bank of Cuba and enacted through Resolution 74/2026 since July 20, mandates that local businesses pay pensions in cash using their daily sales revenue, with a promise of later reimbursement from the state.
In an interview with journalist Tania Costa, Amor emphasized, "Pension payments are a state responsibility, and involving private entities in this process poses significant risks."
Complex Bureaucracy for SMEs
Amor elaborated on the bureaucratic burden placed on SME owners: receiving the retiree's card, delivering cash, deducting the amount, and notifying the bank—all without clear compensation or timely reimbursement assurances.
During a live chat program aired every Thursday around 12:30 PM Cuba time, an SME owner shared his experience with the system. "As an SME owner, retirees bring their cards, and we deduct what we give them in cash."
State vs. Private Sector Responsibilities
Amor confirmed the process, stating, "If I present my card and request 2,500 pesos, the SME owner provides it, deducts it from the card, resulting in a bureaucratic task for them. Completely bureaucratic."
He also dismissed the argument that this measure addresses mobility issues for seniors, suggesting instead that social services should transport those unable to reach bank branches.
"I am convinced that things will gradually improve. But, please, do not force SMEs and self-employed workers to take on state responsibilities," Amor insisted.
Potential Risks for Private Enterprises
Amor highlighted a significant risk: the policy could be used as a pretext to penalize or shut down private businesses unable to meet cash demands.
A chat participant summed it up, "It's a subtle way to make them disappear, just like they did with private hair salons, requiring them to purchase products in dollars and present receipts."
Amor agreed with the sentiment, noting that while the private sector can handle its challenges, pension payments are a different kind of responsibility. "A retirement pension is the culmination of a long working life, and it should be paid by the state."
Structural Crisis and Aging Population
The crisis prompting this measure has structural roots. In June, the government acknowledged a shortfall of over 400 million pesos for its 111,000 retirees, leading to staggered payments based on cash availability at each branch.
The program began as a pilot in April 2026 in four Havana municipalities—La Lisa, Playa, Plaza de la Revolución, and La Habana Vieja—and expanded to Holguín in May, where about 20 SMEs served nearly 5,000 retirees. In July, it was announced as a nationwide measure within an economic emergency package.
The demographic backdrop intensifies the situation: with 25.7% of its population aged 60 or older, Cuba has one of the highest aging rates in Latin America. Aging in Cuba has become a hardship, with pensions amounting to just about nine dollars monthly. According to a survey of 506 retirees in five provinces, 99% find these pensions insufficient for basic needs.
Understanding Cuba's Pension Crisis
What is the new pension payment system proposed by the Cuban regime?
The Cuban regime's new pension payment system mandates that local private businesses pay pensions in cash from their daily sales, with the promise of later reimbursement by the state.
Why does Elías Amor oppose this measure?
Elías Amor opposes the measure because he views pension payments as a state responsibility and believes involving private businesses poses significant risks, including bureaucratic burdens and potential penalties.
How does the current pension crisis affect the Cuban population?
The pension crisis in Cuba affects the population by providing inadequate pensions, equating to only about nine dollars a month, which 99% of surveyed retirees find insufficient to cover basic needs.