Costa Rica's fiscal reform will not cover cost of 'luxury pensions'

If the Costa Rica government can win approval of its plans for a fiscal reform, the new money would not be enough to pay what are currently known as "luxury pensions".

The new taxes are expected to raise $900 million, some 1.5 percent of GDP. But the country has to pay out $1.2 billion for the recipients of the luxury pensions.

The luxury pensions are those that are a perk for those whose contributions are insufficient but are paid out anyhow.