On May 1, the creation of the Welfare Pension Fund in it Official Gazette of the Federation (DOF).
Its wording in some articles and subsections has drawn attention for “ambiguous” terms that call into question what its procedure will be like.
During the virtual Meet Point forum Pension Reform, what does it mean?, from El Financierothe Morena deputy, Angélica Ivonne Cisneros ruled out that this ambiguity represents a risk for the system pensions in Mexico.
“The wording of these paragraphs is prudent precisely because the entire process of defining what will be the rules established by the trust, integration of the technical council, among others, has to begin,” added the legislator.
What are the ‘ambiguous’ paragraphs in the Welfare Pension Fund decree?
During the forum it was mentioned paragraph that corresponds to the second transitional article which, in section c, says:
“The Pension Fund for Wellbeing will provide social security institutes with the necessary resources to ensure that workers who reach 65 years of age and whose pension is equal to 16,777.68, which is equivalent to the average monthly salary registered in 2023 with the IMSS updated by the estimated inflation for 2024, receive a complement to the obligations of the Federal Government in relation to the pension obtained in accordance with the applicable provisions so that it is equal to their last salary up to the amount described in this paragraph…. ”
Also at the end of that same paragraph it is mentioned: “This complement will be subject to the sufficiency of the Fund, as well as the rules determined by the Ministry of Finance and Public Credit (SHCP)”.
The terms ‘procure’ and ‘subject to the sufficiency of the fund’ are those that have attracted attention in the publication of the decree.
That’s why, The legislator explained that a subsequent regulation will be necessary to integrate it into the trust Because a pension fund is not static, it will also have an initial resource.
“There is no risk in ‘ambiguous’ paragraphs; they are paragraphs written with caution and it will be seen over time that this is viable,” added Angélica Ivonne Cisneros.
While, Pedro Vásquez, economist and expert consultant in Social Security, He stressed that a law like this must be “certain, precise and forceful.”
“The possibility is real that the law was legislated without sufficient funding,” explained Pedro Vázquez when questioning the funds that will be allocated to workers’ pensions starting this year.
