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Government Commences Distribution of Welfare Pensions

mexicobusiness.news 4 days ago
Paloma Duran

The Welfare Pension Fund has begun distributing pensions to 280 retired workers, making beneficiaries receive pensions equivalent to 100% of their last salaries, if these do not exceed the MX$16,777 (US$990) per month. However, last week, the Supreme Court accepted an appeal of unconstitutionality against the pension reform, casting uncertainty regarding its future.

Héctor Santana, Director of the Insurance, Pensions, and Security Unit, Ministry of Finance, outlined that the initial allocation for the Welfare Pension Fund is MX$44.894 million (US$2.2 billion). Santana reported that 59% of the resources came from AFORES, 27% from Institute to Return Stolen Goods to the People (INDEP), and 14% from INFONAVIT.

President López Obrador celebrated the launch of pension grants, emphasizing their role in providing adequate retirement benefits to workers. "This reform ensures that these workers will finally have good retirement benefits. It has effectively reduced poverty and inequality in Mexico."

This fund will continue to allocate funds primarily from unclaimed and inactive AFORE accounts. Additionally, 75% of the proceeds from seizures conducted by INDEP will be directed to the fund, with an additional contribution of 25% from profits generated by state-owned projects and entities such as AIFA and the Mayan Train. Similarly, 25% of customs revenues, as well as revenues from the Interoceanic Railway and the Islas Marías Tourist Center, will also contribute to the fund.

Previously, legislators from PAN, PRI, and PRD initiated legal action against the Welfare Pension Fund, raising concerns about potential violations of workers' rights and pointing out ambiguities in the reform. "No matter how much they try to disguise it, what they were doing was taking money. Stealing is not legal. We are absolutely convinced that the Supreme Court of Justice will rule, not in favor of the government, but in favor of the thousands of people who may not even know that they have just been stripped of their resources," Jorge Romero Herrera, Leader, PAN Deputies, said.

Last week, Loretta Ortiz, Minister, Supreme Court, accepted a motion of unconstitutionality against the Welfare Pension Fund. It is expected that in the next few days, Minister Ortiz will propose a draft resolution for review, discussion and possible approval by the Supreme Court.

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