Mexican Senate approves pension fund reform

The controversial reform "Pension Fund for Wellbeing" was approved by the Senate of Mexico

The government of Andrés Manuel López Obrador has promoted a reform of the pension system that was approved by the Senate on Thursday, April 25.

According to the reform called “Pension Fund for Wellbeing,” AMLO seeks to “improve the retirements of thousands of people.”

The Upper House approved a public fund for 40,000 million pesos (about 2,300 million dollars) to improve the retirements of thousands of workers. It had the majority of the ruling party and its allies.

While senators discuss different points of the reform, full approval is expected to occur soon and then be signed into law by the president.

The “Pension Fund for Wellbeing” will receive “resources that have not been claimed by people over 70 years of age from private retirement fund administrators, which in Mexico are known as Afores.”

The money will serve to benefit between 26 and 28 million people by ensuring “a retirement equivalent to their last salary, as long as it does not exceed the average monthly salary in Mexico, which in 2024 is 16,777 pesos (about $974).”

M.Pino

Source: DW

(Reference image source: Unsplash+, in collaboration with Getty Images)

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