Interview: Guillermo Castellano Enamorado
Pensions in Honduras cover little

In Honduras, most pensions and retirement funds are extremely small, too small to cover the basic needs of men and women who devoted their productive lives to private and public businesses.

Of course there are exceptions, like the high level government functionaries who take advantage of their titles to claim huge retirement payments that in time burden the social retirement funds, principally that of teachers.

This is the case for Education ministers who have received pension of 40,000 lempiras (about $2350) a month.

But journalist Guillermo Castellanos Enamorado was not so lucky. His situation is representative of the non-privileged majority in this poor Central American country.

Castellanos Enamorado retired in January of 1994, the year conservative Rafael Leonardo Callejas implemented the strongest economic package in the country.

At 77 years of age, Castellanos Enamorado lives on a pension of 1700 lempiras (about $100) a month from the Institute of Journalists' Retirement (IPP).

He explains that his insurance from IPP, in addition to the cash stipend, covers a certain number of doctor visits and laboratory tests a year. His insurance does not cover the purchase of medicine, which costs him at least 3000 lempiras a month, or 60% of his pension. Castellanos says that his pension barely covers the cost of a taxi, let alone the costs of basic public services like water and electricity. He explains that at his age he should be able to resort to extra funds to supply the needs of himself and his family.

He also says he is satisfied with the services of the IPP, because he understands that "the pensions they give you are based on your salary for the last 36 months you worked."

He recognized also that the constant devaluation of the lempira effects his precarious buying power. Laughing, he notes that the 1700 lempiras he receives now "have the same value of 100 lempiras before, 100 lempiras not devalued."