The government of Javier Milei Since his arrival to the Executive, he emphasized the need to reward older adults who duly contributed to the pension systemdifferentiating them from those who entered through some type of moratorium, which was not necessarily total contributions.
In the first year of administration, the libertarian administration promoted a new retirement mobility formula that updates assets due to inflation -by decree-, froze the bonuses that retirees received of the minimum and announced the end of pension moratoriums.
In that sense, the owner of the National Social Security Administration (ANSES), Mariano of the Heroes He pointed out a few days ago that There is “an outstanding debt” with the retirees who contributed to the system and? They deserve “recognition” for that effortin radio statements.
Thus, the official anticipated one of the ideas that the Government has regarding a possible pension reform project that they are analyzing and that they would send to Congress in 2025. However, sources in the sector confirmed to Scope There is still no official information on this topic.
First and second category retirees
He Government differentiates “pure” retirees from “impure” oneshe assured Scope the Ombudsman for the elderly of the City of Buenos Aires, Eugenio Semino. That is, those older adults who entered the pension system through a moratorium are those of second category, although this does not imply that all of them have entered with a moratorium on all contribution years, but that in many cases they entered for the years that they were missing. Those “pure” are those who entered with all the years of contributions to the system.
In that line, Semino recognized that the Milei government made a strong adjustment on minimum retirees, the Universal Pensions for Older Adults (PUAM) and Non-Contributory Pensions (PNC).due to the freezing of the bonus. Meanwhile, older adults who earn the equivalent of 3 minimums closed 2024 with a recomposition.
“There are 6 million retirees who are losing more and more and are adjusting below inflation”Semino pointed out and detailed approximately how much the retirees of each of the scales lost:
- The minimum retirement it adjusted 13 percentage points below inflation.
- The PUAM and PNC 25 points fell.
- The higher pensions (equivalent to 3 minimums) They recovered 27 points compared to the consumer price index (CPI).
(Data was provided by Eugenio Semino)
For these data, Semino assured: “The Government seeks that the 6 million minimum retirees and pensioners have a subsidy and that the remaining 3 million – retirees with contributions – continue within the pension system”.
He even stated that the increases in pensions in dollars that President Javier Milei boasts about in dialogue with international media responds to the increase in these retirees with contributions, who this year managed to recover their salaries. However, those on the minimum wage and pension beneficiaries did not suffer the same fate.
The thing is, Retirements and pensions explained 24% of the interannual adjustment in November 2024after showing a decrease of 16.8% in the first 11 months of the year compared to the same period in 2023.
Benefit for retirees with contributions
According to media reports, the Government sought to give the contributing retirees a “GDP coupon that makes them participate in the growth of the economy” and it will be a complementary income to the credit. If so, the financing will be linked to economic growth and the fiscal capacity of the State, which implies that the amount will depend on the evolution of GDP, average salaries and tax collection.
On this point, Semino stated that it would be a kind of bonus for those who contributed to the social security system. This measure would reach the 3 million older adults with contributions to the system, who retired without a moratorium and would be the ones who would be receiving the benefit.
As the Government continues to value the importance of contributions to the pension system, they have already announced that they will not extend the pension moratoriumwhich expires next March 23.
Besides, The Government evaluates increasing the retirement age of women aged 60 to 65, equal to that of men. A gradual extension is also considered for both sexesalthough without reaching 70 years.
The reforms are still in the design stage and are expected to be presented to Congress in the second half of 2025, depending on the country’s political and economic climate.
Source: Ambito
