FridayOL

A Growing Concern: Seniors Losing Pension Benefits in Peru

Across Peru, a troubling trend is emerging: older adults are being removed from the Pensión 65 social program, a vital lifeline for many, without any clear explanation. This sudden loss of benefits leaves vulnerable individuals struggling to make ends meet, raising serious questions about the fairness and transparency of the system.

The SISFOH System: A Closer Look

To understand this phenomenon, we delved into the heart of the process – the SISFOH (Sistema de Focalización de Hogares) system. SISFOH is the intricate algorithm used to determine which households qualify as 'poor' and are therefore eligible for social programs like Pensión 65. It's a complex calculation based on a variety of factors, and our investigation suggests it may be contributing to the problem.

How Does SISFOH Work?

SISFOH employs a combination of household surveys, socioeconomic data, and statistical models to assess poverty levels. It considers factors such as income, housing conditions, access to utilities, and even the types of goods consumed. The resulting score determines a household's eligibility for social assistance. However, the opacity of the algorithm, the potential for errors in data collection, and the lack of a clear appeals process are creating significant challenges.

The Problem: Algorithmic Harm and Its Consequences

Our research reveals that errors and biases within the SISFOH system can lead to inaccurate assessments of poverty. For example, a sudden change in a household's circumstances – a child leaving home, a minor increase in income – can trigger a re-evaluation and potentially result in the loss of benefits. Often, those affected are not informed of the reasons for the change, leaving them confused and frustrated. This 'algorithmic harm' disproportionately impacts Peru's elderly population, who rely on Pensión 65 for their basic needs.

Voices of the Affected

We spoke with numerous seniors who have been unfairly removed from Pensión 65. Their stories paint a picture of hardship and desperation. Many have spent years contributing to the social security system, only to find themselves stripped of the support they need in their later years. The lack of transparency and recourse leaves them feeling powerless and abandoned.

Recommendations for Reform

To address this critical issue, we propose the following reforms:

• Increased Transparency: The SISFOH algorithm should be made more transparent, allowing for greater scrutiny and accountability.
• Improved Data Accuracy: Efforts should be made to improve the accuracy of the data used by SISFOH, including more frequent household surveys and better training for data collectors.
• Robust Appeals Process: A clear and accessible appeals process should be established, allowing those affected by SISFOH decisions to challenge the assessments.
• Human Oversight: Implement human oversight of SISFOH decisions, particularly in cases where benefits are being removed.

Conclusion: Protecting Peru's Seniors

The Pensión 65 program is a vital safety net for Peru's elderly population. It is imperative that the SISFOH system is reformed to ensure its fairness and accuracy. By addressing the issues of algorithmic harm, we can protect vulnerable seniors and uphold the principles of social justice.