Mexico Senate approves controversial pension system reform

He Senate of Mexico approved this Thursday a controversial reform of the pension system promoted by the president’s government Andrés Manuel López Obradorjust over a month before the presidential elections.

With the majority of the ruling party and its allies, the High camera approved the creation of a public fund of 40 billion pesos (around 2.3 billion dollars) with which the government promises to improve the pensions of thousands of workers.

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The senators are still discussing several particular points of the reform, although the expectation is that it will be approved in full and then promulgated by the president.

Last Monday, the Chamber of Deputiesalso dominated by the ruling party, gave its approval to the decision.

The call “Welfare Pension Fund“will be nourished by resources that were not claimed by people over 70 years of age from private pension administrators, which in Mexico are known as Before.

With this money, the government seeks to supplement the pensions of thousands of workers, guaranteeing them a pension equivalent to their last salary, as long as it does not exceed the average monthly salary in Mexico, which in 2024 is 16,777 pesos (about 974 dollars) . .

The president AMLO He guarantees that this fund will benefit between 26 and 28 million workers.

Those who will benefit from this change are in the Afores regime, created after a reform in 1997, with which the workers themselves contribute to their retirement. Until before the 1997 reform, the government paid pensions with its own resources.

“This reform aims to correct a complaint, a damage caused in the neoliberal period.“, said President López Obrador during his usual press conference last Tuesday.

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The opposition assured that it will seek to stop the reform in Supreme Court of Justice and accused the government of stealing resources from workers.

“We are facing a fact that considers thousands of workers as objects, which confiscates and deceives, because it is not guaranteed that these resources will go to the workers.” said Senator Beatriz Paredesof the opponent PRIduring the discussion of the reform in the Upper Chamber.

Changes to the pension system are being discussed just over a month before the June 2nd elections, in which the official candidate Claudia Sheinbaum has a comfortable advantage according to research over its opponent Xochitl Gálvez.

Source: Elcomercio

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