Actuary Advises S.S.B. to Engage in Investments with Big Returns

Hernando Perez Montas

Perez Montas says that if S.S.B. can engage in investments that can yield big returns in a shorter space of time, it is better for the board to be able to operate without having to increase contributions. Investments, he said, is one of the key factors to keeping the figures where they are now. He explained that because of other factors that impact the way things are managed, shorter spans and bigger interest rates are always recommended.

Hernando Perez Montas, Actuary, S.S.B.

“The critical juncture of Social Security at present is investments. And the specific investment is a very careful thing that we actually don’t get involved in one kind or other kind of investment. What I am telling them very carefully is to get a real return, not less than 5%. There are many ways to deal with investment. For example, if the rates of interest are low today, you might make adjustments in two years. Don’t sign a contract for 20 years for an investment. Say, okay, it’s low now, but let’s review that rate in one or two years, flexible investment, what they do, like they do in the U. S. So, but, I don’t get directly involved in a specific investment, whether this or that or that. I tell them, try to get that.”