Since the president Andrés Manuel López Obrador (AMLO) announced his 20 social reforms On Monday, February 5, to change different aspects of public life in Mexico, the issue of retirement pensions captured part of the national narrative in the media.
Likewise, the discussion was opened on how to improve the pension system so that decent economic remuneration is granted to those who come to provide services. for individuals and for the State.
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ISSSTE pension reform
It is in this context that Alfredo Fematfederal representative of the Labor Party (P.T.), presented an initiative so that pensions of the Institute of Safety and Social Services for State Workers (ISSSTE) are no longer calculated in Update Units of Measure (UMA) and return to the minimum wage system.
To achieve this objective, he proposed to modify the Law for the Determination of the Value of the Unit of Measurement and Update (LDVUMA), specifying that this unit cannot be applied to the pensions of former state employees. State.
“Although unity Measurement and updating was created as a parameter for determining fines, fees and administrative sanctions, the ISSSTE wrongly adopted this parameter, in order to determine the maximum pension ceiling, replacing the minimum salary, from which a significant impact on civil servants”, condemned Femat Bañuelos.
To defend his postulate, he asserts that the value of the AMU is lower than the minimum wage.which benefits the working class by paying fines and other types of credits, but this is not the case for the calculation of pensions and retirements, hence the need to use the minimum wage to establish this payment.
“Workers in the service of the State suffer a considerable drop in their your income from this situation”, he insisted, therefore, from his point of view, their labor rights must be respected, “so the parameter for calculating the pension payment would be the current minimum wage, because it is part of its nature constitutional and not of the UMA”, he insisted. insisted.
Difference between minimum wage and UMA
And since the deindexation of the minimum wage in the payment of pensions and its calculation in the UMA, the minimum wage has increased substantially, while the Unit has not done so, especially in this administration, therefore linking pensions to the minimum wage would allow retirees to recover a large part of their purchasing power.
It should be remembered that over the past five years, since the start of the AMLO governmentby order of the president, the minimum wage increased to more than 100% of its purchasing power, while the UMA only grew 15%which is lower than the inflation accumulated over this same period.
Finally, there is AMLO’s initiative, which seeks to ensure that those who have contributed since 1997 at IMSS and from 2007 At the ISSSTE, they will be entitled to a retirement pension equal to their last salary, up to an amount equivalent to the average monthly salary recorded at the IMSS.
Source: El Heraldo De Mexico
Ashley Fitzgerald is a financial whiz and a writer at Run Down Bulletin. With a passion for all things economy, she provides insightful and thought-provoking coverage of the latest economic trends and events.