Pension fund seeks to dignify retirements: Segob

The Ministry of the Interior urged citizens “not to be fooled by the black campaign against the pension law.”

He stressed that no one can touch the resources of active workers and, furthermore, this right is imprescriptible.

Currently, the law requires Afores to transfer resources from savings accounts to the IMSS, however – he stressed – they only transferred two percent “and they have kept the rest.”

In a bulletin, the federal agency specified that the Retirement Fund Administrators have more than 6 billion pesos in accounts, of which 0.4 percent have been abandoned for more than 10 years, resources that must be transferred to the IMSS.

The reform initiative that proposes the creation of the Pension Fund for Wellbeing, soon to be discussed in the plenary session of the Chamber of Deputies on Monday, April 22, proposes that instead of them going to the IMSS they be channeled to this fund without collection of commissions and with the possibility of claiming them at any time.

The proposal seeks to increase pensions to dignify workers in the last stretch of their lives, the Government added.

The president of Mexico presented the Reform to the Social Security Law in 2020, which was approved almost unanimously. Although this increased employer contributions and put a stop to abuses in the collection of Afore commissions and thus increased pensions, it was still insufficient to guarantee a decent retirement.

This is because until June 30, 1997, a person retired with the average of their last five years of work, that is, if they earned 10 thousand pesos, they retired with 10 thousand.

However, the reform of the 1997 IMSS Law (approved in 1995) and the reform of the Issste Law of March 2007 (prepared in 2004) converted it from a solidarity system to one of individual accounts managed by the Afores.

“The promise was better returns, however, the reality was to retire with less money because a person who earned 10 thousand pesos retired with 2,700 pesos.”

Since the Reform of the Social Security Law of 2020, those who earned 10 thousand pesos, instead of obtaining a pension of 2 thousand 700 pesos, can retire with 6 thousand pesos, which although it meant an improvement, it is still not enough , he insisted.

“Hence the need for the reform that is currently being discussed.”

He said that the objective of the Pension Fund for Wellbeing is to complement the pensions of people who earn up to the average salary of the IMSS, that is, approximately 16,700 pesos, and thus guarantee that workers retire with one hundred percent of your last salary.