The ongoing cash shortage in Cuban banks is pushing the burden onto the private sector. Small and medium-sized enterprises (SMEs) and self-employed individuals have begun directly distributing pensions to retirees in Mayabeque, using cash from their own business transactions.
This week, state-run Canal Caribe introduced the province's participation in the "Caja Extra" program as a way to bring pension payments closer to the elderly, sparing them the need to travel to bank branches.
Utilizing available cash, the system operates by the bank providing a list of pensioners' names, ID numbers, and the amounts due. The businesses then pay these amounts and have up to 72 hours to submit documentation and be reimbursed.
In Mayabeque, the Banco Popular de Ahorro (BPA) called upon the main economic players in the region to join the initiative.
"They gathered all the key economic actors and tasked us with incorporating the retirees, the most vulnerable, and people with disabilities," one participant told Canal Caribe.
Community Efforts to Identify Pensioners
Social workers conducted a prior survey by district to identify pensioners, determine where they collect their pensions, and assess their mobility capabilities.
For elderly individuals with disabilities who couldn't visit the businesses, economic actors personally delivered the cash to their homes.
"We visited some retirees with disabilities who couldn't come to the store, brought them their statements, and handed over the cash in envelopes," recounted Yamilet Marrero Ponce, a social worker.
Positive Feedback from Beneficiaries
Retirees interviewed by the state channel appreciated the convenience of this service.
"I think this method has been very beneficial for us older people, allowing us to collect our pensions nearby, sitting comfortably with full attention," one woman shared.
Another described the initiative as "an act of love more than anything else for those of us who can no longer be active."
Born from Cash Shortages
Apart from the official narrative, this system has expanded amid a prolonged cash shortage that hinders many retirees from accessing their pensions normally.
"Caja Extra" started as a pilot project in April across four municipalities in Havana—La Lisa, Playa, Plaza de la Revolución, and Old Havana—and extended to Holguín in May, where around 20 SMEs and other economic actors managed payments for nearly 5,000 pensioners.
In July, the government announced a nationwide rollout of the program as part of measures to tackle the banking system's liquidity issues.
Nevertheless, the scheme hasn't ended scenes of retirees waiting for hours to receive their money. In Santiago de Cuba, elderly individuals as old as 80 have queued since the previous afternoon to try and collect their pensions. In September, reports surfaced of seniors sleeping on the ground overnight outside a bank to secure a spot the next day.
Bandec in Santiago de Cuba acknowledged in July that retirees needed to rise early to access cash, presenting "Caja Extra" as one alternative amid banks' challenges.
The solution has also reached Guantánamo. In September, provincial authorities proposed expanding pension payments through SMEs, cooperatives, and self-employed workers to further alleviate bank congestion.
Participating businesses receive commissions and other incentives, such as prioritized banking services and preferential access to cash.
Cuban economist Elías Amor has cautioned that this model shifts a state responsibility to private businesses, potentially creating liquidity issues and additional bureaucratic burdens for establishments that must advance the money.
Cuba has approximately 1.77 million retirees. The minimum pension, raised to 4,000 pesos monthly in September 2025, remains significantly below the cost of basic needs.
While the official discourse touts "Caja Extra" as a convenience for the elderly, its expansion across various provinces underscores the state banking system's failure to ensure that thousands of retirees can access their pensions in cash without enduring long waits and hardships.
Understanding Cuba's Pension Distribution Challenges
What is the "Caja Extra" program?
"Caja Extra" is a program in Cuba where small and medium-sized enterprises and self-employed individuals distribute pension payments to retirees, using cash from their business transactions to facilitate access for the elderly.
Why was the "Caja Extra" program implemented?
The program was implemented to address the severe cash shortages in Cuban banks, which have made it difficult for retirees to access their pensions. It aims to reduce the need for elderly individuals to travel to banks and wait in long lines for their money.
What challenges does the "Caja Extra" program face?
The program places the burden of pension distribution on private businesses, which may lead to liquidity issues and increased bureaucratic responsibilities for these establishments. It also hasn't resolved the problem of long waits for retirees to access their funds.