2023-12-28 01:44:50
Buenos Aires Correspondent
This Wednesday, President Javier Milei sent the Omnibus Law where several reforms to the State and deregulations are promoted. The project confirms the decision to end the current pension updating scheme so that future increases are defined by decree, and also proposes that the Guarantee and Sustainability Fund (FGS) is administered by the National Treasury.
Chapter III of the extensive text refers to the Mobility of Benefits and proposes to “suspend the application of article 32 of Law No. 24,241, its supplements and amendments.” Thus, President Milei seeks annul the equation that the National Congress approved at the end of 2020 and which establishes that updates are made automatically, every three months, according to the evolution of salaries and ANSES collection.
“Until an automatic formula is established, the national executive branch may make periodic increases giving priority to the lowest-income beneficiaries,” indicates the project and thus confirms the willingness to grant the updates on a discretionary basis, by decree.
Likewise, the text requests that Congress give the powers to the Executive Branch “to establish an automatic formula for adjusting the benefits mentioned in sections a), b), c), d), e) and f) of article 17 of Law No. 24,241”. That is, the universal basic benefit, the compensatory benefit, the disability retirement, the death pension, the additional permanence benefit and the old age benefit.
The letter clarifies that the national government will define this equation “taking into account the criteria of equity and economic sustainability.”
In one of the first interviews he gave as Minister of Economy, Luis “Toto” Caputo justified the decision. “What we are actually doing is protecting the retiree. The retirement formula clearly does not work. Retirees earn something really low. “If we continued with this formula, in the next four months, they would earn between 25% and 40% of what they receive today,” he said.
But the megaproject did not include what the criteria will be to promote the updating of pensions, nor how often the increases will be granted.
In the letter, the national government confirmed that it will prioritize the improvement for those who receive lower incomes. Namely, 40% of the almost 6 million retirees receive the minimum salary, which in December stood at $105,713 gross (without bonuses).
Omnibus Law: transfer of the FGS to the National Treasury
In another section of the project, the Milei administration establishes “the transfer of the assets of the Guarantee and Sustainability Fund created by Decree 867/07 to the National Treasury.”
The FGS is currently administered by Anses. It’s regarding a multimillion-dollar fund that, according to the latest official data, reached US$ 76,000 million.
Anses highlighted that the FGS grew 117% in the last four years. If the Milei project advances, those items will remain in the hands of Minister Caputo.
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