The Buenos Aires legislature approved the pension reform of Banco Provincia, but the 2025 Budget was blocked

The Buenos Aires legislature approved the pension reform of Banco Provincia, but the 2025 Budget was blocked

Throughout yesterday afternoon, negotiations were carried out both with the opposition and within Unión por la Patria to be able to vote in both chambers on the so-called “law of laws” – which contemplates expenses for more than 34 billion pesosforesees a primary deficit of 628,680 million pesos and a financial deficit of 1,486,271 million– and the Tax Law, which determines the taxes that Buenos Aires residents will pay next year, sent by Axel Kicillof.

In those conversations – in which the mayor of Quilmes participated, Mayra Mendoza; Escobar’s, Ariel Sujarchuk; that of Florencio Varela, Andrew Watson; that of Lomas de Zamora, Federico Otermin and that of Malvinas Argentinas, Leonardo Nardinitogether with the presidents of the Unión por la Patria blocs in Deputies, Facundo Tignanelli and the Senate, Teresa Garcia– It was agreed to include more resources for the municipalities through different funds, some modifications to the Tax Law and the autarky of the IOMA.

Meeting of mayors in the Chamber of Deputies for the 2025 Budget.jpeg

However, at 12:05 the Chamber of Deputies convened a intermission quarter until Friday the 27th. Legislative sources explained that the session did not prosper because from The Executive Branch did not agree to remove the debt request of the Budget text and deal with it later, as some legislators proposed in order to move forward.

From the Kicillof government they expressed that there was no will on the part of the opposition to give the green light to the request for authorization to take new debt for 1,156,806 million pesoswhich requires two thirds. “Where do you think the money is going to come from? All municipalities are being harmed,” they stressed.

Bapro Law

However, in the session progress was made with the sanction of the reform to the retirement regime for Banco Provincia workers, which had the votes of the Union for the Homeland, Civic Agreement-UCR+GEN blocs and the two groups of the Left.

Among the most notable points of the initiative are the reduction of the retirement age for women to 60 yearsreversing the previous reform that had raised it to 65; the 82% mobile refund for the calculation of the retirement benefits of Banco Provincia (the Vidal law provided for the calculation at 70%) and the establishment of pensions at 75% (the former provincial president’s rule indicated doing it at 70%).

To refer to this initiative, the representative took the floor Susana Gonzalezwho expressed: “This is the law that the workers of Banco Provincia are asking for, and our role here is to accompany them. Let us hope that from now on there will be no government, no governor, nor any president who assumes powers that do not correspond to him or who sanctions without listening to the workers who affect these laws.”

In December 2017, during the Vidal government, the provincial Legislature approved a rule that modified the retirement regime for the entity’s employees, raising the retirement age of women from 60 to 65 years, equal to that of men.

In addition, a change was implemented in the calculation of retirement assets, based on the average of the last ten years of salaries, instead of using the last salary received. This adjustment was argued by the Executive as necessary to reduce the deficit of the Banco Provincia pension fund, which according to the government was generating an unsustainable burden for the province’s coffers.

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Press block UxP Chamber of Deputies

However, the rule received strong resistance from the opposition, unions and Bank employees, who considered the measure as a threat to their acquired rights and a loss in their working conditions.

In fact, the Banking Association union promoted strikes and mobilizations in rejection of the reform, while opposition legislators criticized the modifications in harsh terms.

In January 2018, tension reached its peak, when the mayor of Ensenada, Mario Secco, starred in a controversial episode by breaking into the session hall while the project was being debated, surrounded by protesters. There, he expressed his disagreement with the reform, for which he was later accused of inciting violence.

After the modification to the retirement system, numerous legal claims were filed by associations of retirees and bank workers, who questioned the constitutionality of Law No. 15,008. In fact, more than two thousand people obtained precautionary measures that paralyze the application of several of the key points of the regulations.

Thus, in 2021, the Buenos Aires Supreme Court ruled against the reform promoted by Vidal, considering that it had violated the acquired rights of workers and asked the leadership for a political solution.

The proposal of the Buenos Aires Executive sanctioned at this time was prepared at a dialogue table convened by the highest court, where the Banking Association, Banco Provincia and retiree organizations participated. The central objective was to achieve an agreement that guaranteed the financial sustainability of the Bank’s Retirement Fund, while restoring the violated rights.

Among the modifications included in the Law, the expansion of the contributions of both active and passive affiliates and of Banco Provincia itself stands out. The mandatory contributions from the banking entity will reach 21%, while the personal contribution for entrants will be 19%. In addition, the creation of an additional contribution from the Bank and a budget item from the Province is planned to ensure coverage of the Fund’s deficit.

new president

In addition, in the session, the leader of the Renewal Front was appointed Alexis Guerrera as the new president of the House, replacing Alejandro Dicchiara.

The legislator took office based on an agreement reached towards the end of 2023 between different sectors of Peronism. Thus, it was ruled that Dicchiara – who responds to Maximo Kirchner and the group of mayors politically aligned with Martin Insaurralde– presided over the lower house for a year and then made a “castling” with Guerrera, a leader close to Sergio Massa.

In his inauguration message, the new president expressed: “I believe that politics is about generating consensus and agreements, about dialogue. I believe in the collective construction of those who think differently. This is how syntheses are achieved, policies, programs, laws are strengthened. “When there is that balance between those of us who have different visions for the Province, that is when we manage to improve the lives of the people of Buenos Aires.”

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“Above individualism and small discussions, we have to collaborate with a mandate that is bigger than our egos: that of giving the coming generations a better Province than the one we received. I ask that we work in that sense,” he concluded. .

Guerrera, 53, is a teacher. He was a councilor, mayor of General Pinto for four terms and Buenos Aires deputy. He was also president of Trenes Argentinos and served as national Minister of Transportation during the government of Alberto Fernández.

Source: Ambito

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