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The Government confirmed that the new retirement formula must be discussed by Congress​


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March 19, 2024


The Government confirmed that the new retirement formula must be discussed in Congress
The presidential spokesperson, Manuel Adorni , denied today that President Javier Milei is considering signing a decree to establish a new retirement formula and confirmed that the Executive Branch's idea is for the new scheme to be discussed by Congress.


During the usual press conference from the Casa Rosada, the official was consulted about the rumor that arose in the last few hours that Milei was about to sign a decree to establish the retirement formula that replaces the one in force since the Government of Alberto Fernández .


“For now, the DNU formula is not an alternative because we believe that the debate is something that should happen between all sectors, that politics should give,” Adorni stated.


The spokesperson said that "the new formula probably contemplates something elementary, that the retiree does not continue to lose against inflation as he has been doing not only since the last formula, but in the last 20 or 25 years," although he clarified that it must be within the zero fiscal deficit parameters carried out by the Ministry of Economy

Any formula will consider that purchasing power will not continue to be lost, ” he said, adding: “It is an extremely delicate issue, it will always be within the framework of budget restriction and fiscal balance, which is non-negotiable. The retirement formula will follow all these logics: that it does not harm the retiree, that it complies with fiscal balance and that it is discussed by all sectors.”

With the inflationary jump since the inauguration of the Government of La Libertad Avanza, retirees were one of the sectors that suffered the greatest loss of purchasing power. The Government included a new formula in the frustrated Omnibus Law, although there was resistance in the opposition, even from the so-called "dialogue" sectors.

The main point of questioning was the loss suffered by pensions in recent months, despite the Government seeking that the new formula contemplate increases based on the inflation index.

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(Nicolás Stulberg)

In February, the Government ordered a pension increase for next month and a new bonus to complement that income, mainly for minimum salaries, in a context of marked fall in purchasing power due to the inflationary acceleration of recent months and the lag that It has the mobility formula to update the amounts, based on the variation in registered salaries and Anses resources per beneficiary.

The Minister of Economy, Luis Caputo , had assured, a few weeks ago and after that parliamentary instance, that there was an "advanced" dialogue with other blocks of Congress to promote during ordinary sessions a new scheme in line with what the Executive Branch intends. .

The issue of retirements has a political and social aspect (the discussion about the loss of purchasing the assets of a vulnerable sector such as retirees) but also a fiscal one, since social security (which also includes other expenditures such as the AUH) represents 42% of the total budget.

Currently, the minimum retirement reaches $134,445. To this figure is added the bonus of $70,000 defined by the government, so the minimum asset amounts to $204,445 gross.

Last week, the Minister of the Interior, Guillermo Francos , had revealed that the Government proposes to include an additional increase of 10% to compensate for inflation in the first quarter for retirees, and apply a new retirement formula that would apply from April.

The official in charge of political relations with the provinces acknowledged that “there are legislators who want to change the retirement formula because it does not adjust to the real situation of the economy.” And that " the Government is going to propose a change so that it is adjusted by the Consumer Price Index (CPI) ."
 
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