Welfare Pension Fund assured for 20 years: Treasury

Mexico Metropolis. The Welfare Pension Fund belief, which on the finish of this month will attain an quantity of 44.5 billion pesos, plus different sources of financing that may proceed to be added, will be capable of pay the pension dietary supplements of staff in Mexico till 2045, estimated Héctor Santana Suárez, head of the Insurance coverage, Pensions and Social Safety Unit of the Ministry of Finance and Public Credit score (SHCP).

“The suitable of staff to entry their assets, those that have an inactive Afore account, is maintained and assured. And with the assets that we’ll have on August 1 within the Pension Fund for Welfare, solvency is assured for the subsequent 20 years, at the least; because the fund will advance in its consolidation,” stated the official, with estimates from the unit he heads on the Treasury and with knowledge from the Nationwide Fee of the Retirement Financial savings System (Consar).

Throughout his participation within the keynote lecture on the “Pension Fund for Welfare”, throughout the framework of the 2024 Afores Truthful, the official revealed that this week they’ll conclude the executive course of in order that round 12 billion pesos from the liquidation of Financiera Rural, whose entity was created with assets that got here from an outdated pension system, which was the SAR of 1992, will attain the fund’s belief.

He added that funds have already arrived from the Nationwide Employees’ Housing Fund Institute (Infonavit), the Housing Fund of the Institute of Social Safety and Providers for State Employees (Fovissste); from the tenth short-term pension for PensionIssste staff, primarily.

Though in these first years solely a restricted variety of staff will profit, as a result of they’re those who will retire underneath these circumstances, the advantages will already be noticed from July when the primary funds are made, stated Héctor Santana.

In earlier estimates, Rogelio Ramírez de la O, Secretary of the Treasury, estimated that the Welfare Pension Fund would have a helpful lifetime of between eight and 10 years.

Income and funding

With the assets that shall be accessible by August 1, 2024, the viability of the Fund is till 2045. Afterwards, he confused, it is going to be essential to search for methods to strengthen the funding of the Fund. It is going to be vital to consider the way it will proceed to be funded. For now, stated Santana Suárez, there are a number of sources outlined by decree of April 1, 2024.

Hector Santana stated that on common, 1,500 staff will profit from the Welfare Pension Fund per 12 months. We’re speaking about round 30,000 staff in 20 years.

Individually, Julio César Cervantes, president of Consar, defined that round 24,239 accounts have been transferred to the Fund, however the Afores transferred 21 billion pesos in bonds, to be able to keep away from losses to staff and to protect the full worth of the employees’ assets.

“The assets held within the Welfare Pension Fund belief are invested in federal authorities bonds and company bonds of the best credit score high quality (AAA).