As required by the President of Mexico, Andrés Manuel López Obrador (AMLO), on Monday, July 1, his government began delivering the first pension supplements to retired workers.
The date was significant for the president and his administration because it marked the sixth anniversary of what he considers his historic electoral victory in 2018, and the start of an economic and social regime change known as the “Fourth Transformation.”
One of the initiatives promoted by the president a few months ago was the creation of the Pension Fund for Welfare (FPB), a state-managed fund that will be used to supplement workers’ pensions so that they can retire with 100% of their salary, up to a cap of approximately 932.10 dollars at the current exchange rate.
The first pension supplements were to be delivered on July 1, a promise that has been fulfilled.
These pensions will consist of the pension the worker receives from their individual account (replacement rate) and the supplement that brings their pension to 100% of their salary at the time of retirement, provided it does not exceed the cap of 16,777.77 pesos and pertains to the 1997 law generation.
Afore Transfers
In a statement, the Mexican Association of Retirement Fund Administrators (Amafore) reported compliance with the law requiring the transfer of resources to the Pension Fund for Welfare.
“As part of the process to carry out the transfer, the Afores, in collaboration with the authority, conducted a thorough review to determine which accounts belonged to people over 70 years old in the case of IMSS and 75 years old in the case of ISSSTE, and who had not contributed to social security for one year,” said the institution.
Thus, the total amount of resources sent to the trust established at the Bank of Mexico was approximately 1.34 billion dollars.
Amafore indicated that in the coming days, it will send a certificate of transfer of the resources from this sub-account to the last registered contact point of each worker.
Additionally, in the next month of September, an account statement will be generated with the latest movements under the Afore administration. Subsequently, the account statement delivered will include the performance reports of the Pension Fund for Welfare.
