translated from Spanish: “Proposal for Reform of the Retirement Savings System, in the 4Q is a big step”: Ignacio Campos

home Michoacán “Proposal for Reform of the Retirement Savings System, in the 4Q is a big step”: Ignacio Campos

Uruapan, Michoacán.- Through a statement the federal deputy, Ignacio Campos Equihua indicated that “With the proposal to Reform the Savings System for Retirement (SAR), in 4Q we will take a great step for the workers of Mexico to have a decent pension at the end of their working life; where the contribution time will be reduced to 15 years and those who earn the least will be prioritized, without the worker having to contribute more for retirement.”
This, after President Andrés Manuel López Obrador signed the agreement with the private initiative and the Legislative Power to carry out the Reform to the Pension and Retirement System, where the weeks of contribution of workers will be reduced, from one thousand 250 to 750; increasing the employer’s contribution from 5.15 to 13.87 percent, and decreasing to 0.7 per cent the commissions of the Retirement Fund Managers (Afore).

“This demonstrates the sum of wills that exist between the Government of Mexico and the business sector, for benefiting the most unprotected segments of the population; in particular, those who are paid on low wages in the formal sector of the economy, allowing them to retire with 750 weeks of contributions and 60 years of age, receiving a pension close to the salary they received while active.”

Finally, the secretary of the Committee on Budget and Public Account, Campos Equihua stressed that the increase in the amount of pensions to workers does not represent that they must allocate resources from their working wages, but that the increases come from the contributions of the patterns mainly, “since the federal government will only reallocate the resources that it already has earmarked for this purpose”.

Original source in Spanish