This mechanism, used by some 800,000 people to retire without complying with the 30 years of contributions required by pension regulations, would be nullified if the text is approved in its current form.
The project of the new omnibus law includes an article that proposes the repeal of pension moratoriums. This mechanism, used by some 800,000 people to retire without complying with the 30 years of contributions required by pension regulations, would be nullified if the text is approved in its current form.
The current moratorium allows interested parties to regularize periods of contributions not made until December 2008, through a payment plan extended in up to 120 installments.
This agreement is managed with the National Social Security Administration (ANSES), and the agreed upon installments are deducted directly from the retirement amount that the person receives upon accessing the benefit. In addition, a specific plan is established for those who are less than ten years away from retirement age, allowing them to begin paying off their pension debts in order to reach retirement without outstanding liabilities.
These policies were implemented to facilitate access to a pension for those who, for various reasons, were unable to complete the formal requirements for years of contributions, thus offering a solution to improve their financial security in old age.
However, The Government of Javier Milei considers that the moratoriums are one of the causes of the weakness of the system, which has added some 4 million beneficiaries without financing sources being able to cover them.
If the proposed repeal is approved, those who do not meet the legal requirements to retire will only be able to access the Universal Pension for the Elderly (PUAM), which is equivalent to 80% of a minimum retirement.
It is important to note that the repeal would not affect the rights acquired by those who already obtained retirement via moratorium in the past. However, those who planned to use this mechanism in the future would be affected by the measure, having a limited time to regularize their contributions before the new law came into force. This could have a particularly significant impact on women who are close to reaching retirement age and who would lose the possibility of accessing retirement without meeting the contribution requirements.
Source: Ambito
