A constitutional referendum was held in Uruguay on 26 November 1989 alongside general elections.Uruguay, 26 November 1989: Cost of living adjustment for pensions Direct Democracy The proposed changes to the constitution would require state pensions to be increased at the same rate as the salary of civil servants. The proposal was approved by 81.78% of those voting and 72.51% of all registered voters.
Background Uruguay was suffering from a high inflation rate of around 100% at the time of the referendum. It was held after a petition was submitted by pensioner organisations with the required signatures of 10% of the number of registered voters. In order to pass, the referendum had to be approved by a 50% of those voting and 35% of registered voters. Invalid or blank votes were taken to be "no" votes.
Constitutional amendments The proposals would amend article 67 of the constitution to state:Constitution of the Oriental Republic of Uruguay, 1967, As Consolidated to the Constitutional Reform of 31 October 2004 United Nations
Results
Aftermath The effect of the amendment was a rapid rise in pension expenditure, which increased government spending by around 2–3% of GDP.Pension Reform and the Development of Pension Systems: An Evaluation of World Bank Assistance World Bank
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