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Retirements: the Government published the total veto of the mobility law and maintained the $70 thousand bonus - Infobae
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Jubilaciones: el Gobierno publicó el veto total a la ley de movilidad y mantuvo el bono de $70 mil
El presidente Javier Milei había firmado el pasado viernes la medida que rechaza la reforma que aprobó el Congreso y hoy promulgó la decisión a través del Boletín Oficial. A la par confirmó que volverá a otorgar un plus para actualizar los ingresos de los jubilados. También se evalúa un...
www.infobae.com
September 02, 2024
President Javier Milei had signed the measure last Friday that rejects the reform approved by Congress and today he promulgated the decision through the Official Gazette. At the same time he confirmed that he will again grant a bonus to update the income of retirees. An extra increase of around 8 percent is also being considered.
The meeting held by Milei with the legislators of PRO and LLA
After the Senate approved the law for the new retirement mobility , President Javier Milei vetoed the project entirely. The decree —which he signed on Friday night— was published this morning in the Official Gazette and thus the decision became effective. At the same time, the Executive made official a new bonus of 70 thousand pesos for retirees within the framework of the current system of updates. What has not yet been defined but is under study is an extra increase that could be around 8% ; as Infobae anticipated , that will be conditioned by the reaction of the opposition after the veto.
The president signed his rejection of the legislation after the meeting he held with the deputies and senators of La Libertad Avanza (LLA) and with the allied members of the lower house.
Decree 782/2024 alleges that the initiative approved by Congress is “ manifestly in violation of the current legal framework since it does not consider the fiscal impact of the measure nor determine the source of its financing.” This was the main argument that the Executive has maintained since the law was passed. They also argued that the project “suffers from serious technical and operational deficiencies that highlight its manifest unreasonableness and the serious difficulties that its implementation would present.”
They also called on the Legislative Branch to “act with institutional common sense, in a responsible manner , taking care not to issue provisions whose application is inconvenient for public accounts, or that contradict the projected income and expenditure malnutrition foreseen in the National Budget.” “The administration of public resources must be carried out in a responsible manner and in accordance with the public purposes and principles of good administration that all government action must pursue, seeking to achieve the common good that must guide all government policy,” they maintain.
Javier Milei met with his economic team after the law was passed
In this regard, they emphasized that the Budget was designed based on a "general government program - which is not simply the President's program, but the program that the people voted for when they elected the President - and the public investment plan."
The national government also warns in the preamble to the decree that the initiative would complicate the recovery of the pension system by projecting that it would generate future defaults and debts with the beneficiaries by not specifying the source of financing.
To illustrate its arguments, the Executive mentioned that the estimated impact of the measure amounts to 6,160,000,000,000 for the year 2024, that is, six hundred and sixty billion pesos, and about 15,430,000,000,000 for the next year. These numbers “ equivalent to 1.02% of the Gross Domestic Product (GDP) calculated for the current year ; and 1.64% of that, estimated for the next year.”
With regard to the pension expenditure that this would entail for the National Social Security Administration (ANSES) , they estimate that these amounts represent an increase of 18.5% for the year 2024 and 29.2% for the year 2025. In addition, they indicated that if the aforementioned expenditures were related to the primary expenditure of the National Administration, provided for in the current budget, the measure "would entail an increase of approximately 8% of the aforementioned budget in annual terms . "
The votes obtained by the reform of the retirement mobility law (Photos: Senate Communication)
Faced with this, the Government recalled that “its primary objective is to issue zero-dollar money in order to eliminate the inflationary crisis that undermines the purchasing power of Argentines.” Consequently, they again pointed against the initiative by saying that its application “would seriously hamper the sustainability of the Republic’s public finances,” something that would force it to contract extraordinary financing: through public debt or by increasing taxes.
After the veto, Congress can insist on the new formula, so the opposition will have to put it to a new vote and have the support of two thirds of the members present in both Chambers . It will first be discussed in the House of Representatives, the chamber of origin, and then in the Senate.
For this reason, since the approval in Congress, the Government has focused on strengthening ties with legislators allied to the ruling party: the PRO and the Movement for Integration and Development (MID) . Thus, it met on Friday with the main leaders to explain why the measure would not be enacted.
In this context, the PRO pledged to support the Executive's decision , despite the fact that its legislators had voted in favor of updating pensions.
aviso_313142.pdf
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The vetoed legislation established a monthly update based on the latest available data from the Consumer Price Index (CPI), as the Decree of Necessity and Urgency (DNU) in force activated by the Executive. In addition, it includes an extra compensation - or "splice" - of 8.1%, given that the Government granted 12.5% that does not cover the 20.6% inflation in January. To prevent the update of the basic basket - which is made effective after the payment of salaries - from being outdated, it was decided to push a minimum equivalent to 1.09 in that sense.
Hours after the sanction, the President's Office issued a statement confirming what Milei had previously announced. "In an act of demagogic populism, he sanctioned an irresponsible, illegal and unconstitutional bill that establishes exorbitant expenses without its corresponding budget allocation, which would necessarily imply that the Government falls back into the old practices of money issuance, tax increases, or indebtedness, which are the same recipes that have led us to failure during the last 100 years," they said at that time.
The extraordinary bonus for retirees
Meanwhile, the Executive has made official a new extraordinary pension bonus of 70 thousand pesos for the holders of contributory pension benefits paid by ANSES; those beneficiaries of the Universal Pension for the Elderly and people who receive non-contributory pensions for old age, disability, mothers of 7 or more children; and other non-contributory pensions and gracious pensions, whose payment is the responsibility of the social security agency.
Retirees will receive a new extraordinary bonus
This amount was set in decree 783/2024 , also published this morning. The regulations also establish that “for those holders who, due to the sum of all their current benefits, receive an amount greater than the guaranteed minimum pension benefit, it will be equal to the amount necessary to reach the limit resulting from the sum of said minimum benefit plus the maximum amount of the extraordinary bonus.”
"In the case of pension benefits, regardless of the number of co-participants, they must be considered as a single holder for the purposes of the right to receive the Extraordinary Pension Bonus that is granted," the decree states.
