Retirements would currently be 32% higher if Javier Milei had not modified the mobility formula by decree. So, The minimum retirement would be $ 403,302 instead of the current $ 304,726according to a report from the Center for Political Economy of Argentina (CEPA). The data becomes relevant in the midst of the discussion for the increase in assets promoted by Congress and the cross accusations with the Government. Pension experts warn that the decree opens the door to more litigation. The Cabinet Chief already confirmed that they will veto the parliamentary initiative.
Under the premise that retirees would not lose more against inflation, In March 2024 President Javier Milei by decree the retirement mobility formula and established that the assets will be updated monthly according to the consumer price index that measures the Indec two months ago. At that time, a 12.5% recomposition was also awarded only once.
The DNU that the government showed as a guarantee of not losing more purchasing power, can also be interpreted as the impossibility of recovering at least partially liquefied in the last decade. According to the document to which he had access Scope, Since September of last year, retirees would have had higher income if the previous formula had been appliedwhich combined the evolution of wages and collection.
To the point that according to strain calculations, made based on INDEC and ANSES data, A minimum retirement without bond would be $ 403,302, 32% more than the current $ 304,726. The calculation is armed based on the minimum to establish an example, but it could well be replicated on a medium or maximum retirement.
The report indicates that the key is at the time the formula was modified: Just when inflation began to slow down and the previous mechanism to show favorable results. In fiscal terms, the change guaranteed the Government that the pension expense does not shoot but took away the possibility of recovering part of the lost.
An exit “Cheap” to litigation
In 2024, Congress had already tried to partially rebuild retirement, at that time the Government also decided to veto the norm in order to take care of the budget balance. Already at that time, the former head of the ANSES under the libertarian administration Osvaldo Giordano He had described as a “serious problem” that retirement mobility is regulated by a DNU.
In that sense, the current head of the Institute of Studies on the Argentine and Latin American Reality (IERAL) of the Mediterranean Foundation explained that both the National Constitution and a series of judicial failures establish that it is Congress who must determine it. On this point, he anticipated that the DNU will bring more litigation and those judgments will imply “greater public spending.”
A dialoguistic opposition legislator told this medium that The 7.2% increase could be a cheap exit for the Government, compared to the expenditure that would have involved the continuity of the formula that Milei repealed by DNU or the litigation that can be come for the state forward. Anyway, the chief of Cabinet Guillermo Francos has already confirmed that the law will be vetoed.
And the bonus?
The strain report also has a section for The bonus, which remains frozen at $ 70,000 since March 2024, despite the fact that accumulated inflation exceeds 127%. According to strain calculations if it were indexed to IPC, it should be at $ 158,000 for June. So the monthly loss is almost $ 89,000 per retiree. The government has already confirmed that there will be no update in the remainder of 2025.
According to CEPA, In terms of purchasing power, retirement without bond in the second quarter of 2025 were 3.1% below the last quarter of the previous management. Those that include the bonus, 15.7% below. In the historical series, the current minimum retirement is at levels comparable to those of the 90s.
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So far, despite the growth of the economy, the government offered no alternative for retirees to recover a portion of the purchasing power lost in the last decade. What is left forward is the discussion of a pension reform after the elections that will seek to raise the retirement age and increase the number of years of contributions.
Source: Ambito
