Process pensions to the decrease

National
The executive must decide if applies the criterion of the Court
Process pensions to the decrease
By: Carlos Damián August 16, 2010
The Court considered the article 33 of the law of the IMSS before the reform only
México. - From 1995 were known the cost of the transition between the ancient Law of the Social Security (LSS) and the one which came into effect 1 of July of 1997 would have a cost for the Treasurer, equivalent to the one percent of the wide internal product (WIP) during at least 25 years. This was one of the large topics of the discussion on the reform to such classification, indicated Asa Cristina Laurell, investigating of the social security.

Without impeded she commented, "the federal government did not made case and decided to load such cost to the Treasurer", and it is now the moment in which "certainly increased the requests for retire of persons that cover the requirements of law of 1973, when to the federal government aches to pay them what them corresponds". The reform approved by the Congress in 1995 established that the workers that began to quote before of the 1 of July of 1997. When the law came into effect and was formalized the creation of the individual accounts for the pension; would have the possibility of choosing, to the moment of requesting their pension or retirement, between the system of the previous law or with their savings accumulated in the fund administrative for the retirement (AFORE).

The Mexican Institute of the Social Security (IMSS) is obligated to present to the requesting the calculations of both plans so that he opt for which more knows to the social associated. The IMSS had a legal reform in 1995 for the one which was created the system of AFORE. In retrospective, the authorities qualified as overdone the calculation that was made on the load that would represent for the finances of the State the payment of pensions of the workers that will opt for retiring under the mechanism of the ancient law.

Therefore, it corresponds to the Federal government the decision of applying or not the criterion of the second room of the Supreme Justice Court of the Nation (SCJN), that limits to 10 times the minimal salary of the Federal District the amount of the pensions and pensions by disability, oldness and unemployment in advanced age that would be requested based on the law of 1973. The IMSS and its technical council nothing have to do with the topic because the resources for the pensions and pension’s payment originate of the public finances.

She commented after checking the text of the jurisprudence of the Court, that the magistrates did not take into account the reform that was made to the law of the IMSS in 1993, by the one which pay one’s subscriptions for the disability insurances, oldness and unemployment in advanced age were located in 25 minimal wages. In their judgment, just considered the article 33 as was before the modification; that means, with the ceiling of 10 minimal wages for the quotation.

If earns jurisprudence that they return the quotations
Of be applied the jurisprudence of the SCJN the topic of pensions, the federal government will have to return about 6 thousand 666.67 millions of dollars to a million 200 thousand working that they have quoted but of 10 minimal wages, warned the executive, Gustavo Rodarte de la Serna, of the Mexican Executive Institute of Finances. The executive explained that the measure will unleash a demands wave of the affected so that would be them returned which provided after exceeding 10 minimal wages. This event "would represent a disaster that the IMSS does not has capacity of voting and that the Estate Secretariat (SH) –Public Treasure- must correct", indicated Rodarte.

Rodarte emphasized that the analysis carried out by the Court to determine the ceiling of the pensions was a uppercase mistake. He emphasized that according to the article 12 transient of LSS outstanding, the jurisprudence of the 9 of past June does not has positive repercussions in the finances of the IMSS, since corresponds to the government the payment of the pensions. Also it expressed that it will be the federal government the one which must define if is record the jurisprudence of the Court, because the IMSS "does not has decision faculty".

The principal problem of the IMSS, that vulnerable its finances are the pensions of the workers of the own social institute. We can add in the finances deficit, the pension’s payment for persons that quote in the IMSS, the diseases payment, maternity, child cares, social bonus and health for the family. The social associated with just 10 antiquity years a worker of the IMSS can be retired with 50 percent of its income and to obtain the hundred percent from the benefit from its retirement after 28 service years, independently from its age. (La Jornada, social report, p.p. 3 - 5, August 4, 2010).