Retirements in April will increase by 13.2% (February inflation), plus a compensatory tranche of 12.2%, plus the $70,000 bonus. It results in a minimum asset of about $241,000.
Since the current law is repealed in July, the direct calculation begins with May inflation.
The assets of the retired will increase in the order of 27.5% in April after the publication of the Decree that made the new adjustment formula official and the norm contains a series of legal links that must be met, hence its wording leaves some questions open.
But, The concrete thing is that the Ministry of Economy confirmed that retirements in April will increase by 13.2% (February inflation), plus a compensatory section of 12.2%, plus the bonus of $70,000, which results in a minimum asset of about $241,000.
For the following months, this way of measuring inflation will continue to have an impact on the pockets of retirees, that is, inflation is added to the base asset.
But, the rule was drafted with the legal obligation to maintain the retirement mobility formula in force until July 1.
Consequently, in the months of May and June the final credit will also be adjusted by the inflation of March and April (what is known as t-2), but the way to arrive at that number will be as follows:
It will be paid in the form of “payment on account”, given that this percentage must be calculated based on the law still in force, which is quarterly.
For example, if with the current law the quarter (April, May, June) gave an increase of 17% and inflation was 20%, they will charge the 3 additional points.
Since the current law is repealed in July, the direct calculation begins with May inflation.
What will remain at the discretion of the Executive Branch will be the amount of the bonuses, which if not updated will favor the liquefaction of retirement assets.
The adjustment for inflation means that there is no mechanism for retirement assets to recover the lost purchasing power.
Source: Ambito
