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The new Bases Law seeks to repeal pension moratoriums: what it means for retirements - Infobae
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La nueva Ley Bases busca derogar las moratorias previsionales: qué significa para las jubilaciones
Si esta nueva versión de la norma termina siendo aprobada, quienes no cumplan con los requisitos legales para jubilarse, solo podrán acceder a la Pensión Universal para el Adulto Mayor (PUAM)
www.infobae.com
April 11, 2024
If this new version of the rule ends up being approved, those who do not meet the legal requirements to retire will only be able to access the Universal Pension for the Elderly (PUAM)
Congress must deal with the official project when it is sent by the Executive. For now it exists in draft form (Nicolás Stulberg)
The draft of the new Omnibus Law includes an article that repeals pension moratoriums. The current mechanism that was used by some 800,000 people to retire without having the 30 years of contributions required by the pension rules would be annulled if the text as distributed by the Government is approved.
Article 274 of the “Bases and Starting Points Law for the Freedom of Argentines” that circulates in draft form crosses out, in a single line, the possibility of adhering to a moratorium to access a retirement. The text reads, plainly, “Repeal Law No. 27,705,” the most recent rule that governs the pension debt payment plan.
At the urging of Cámpora, this law created the system so that people who do not qualify for retirement can access one.
The current moratorium allows interested parties to regularize their periods of contributions not made until December 2008, through a payment plan extended in up to 120 installments.
This payment agreement is managed with the National Social Security Administration (Anses) and the agreed upon installments are deducted directly from the amount of the retirement that the person receives upon accessing the benefit. Furthermore, a notable feature of this moratorium is that it introduces a specific plan for those who are less than ten years away from retirement age, allowing them to begin paying off their pension debts in order to reach retirement without outstanding liabilities.
These types of policies were established as a means to facilitate access to a pension for those who, for various reasons, were unable to complete the formal requirements for years of contributions, thus offering a solution to improve their financial security in old age. One of the arguments in favor is the enormous incidence of labor informality, which means that many people do not have sufficient contributions despite having worked their entire lives.
President Javier Milei is making a new attempt to achieve legislative approval of his Omnibus Law (AP)
From the point of view of the Government of Javier Milei , meanwhile, the moratoriums are one of the causes of the weakness of the system, which added some 4 million beneficiaries without financing sources being able to cover them. In fact, in his opening speech to Congress sessions, he mentioned “a pension reform that gives sustainability to the system, respects those who contributed, and contribute, and allows those who prefer to subscribe to a private retirement system” as part of his “ May Pact”.
If the repeal promoted is successful, those who do not meet the legal requirements to retire will only be able to access the Universal Pension for the Elderly (PUAM), which is equivalent to 80% of a minimum retirement.
But, experts clarify, the repeal would not in itself affect the rights acquired by those who already obtained retirement via moratorium in the past. The Government wants differential, better treatment for those who completed the contributions. But that intention, never hidden, is not materialized with the repeal of the law that sustains the moratorium.
“Once it is sanctioned, it will have immediate effect and those affected are those who are not of full age on the date of the sanction. The regime currently allows these contributions to be brought forward before reaching the age of majority in order to regularize them. And if someone had planned to do it in the remainder of the year, now they have 20 days or a month left to cancel in full. Yes, once paid, it doesn't matter if they reach the age in a year, because they will already have those contributions, regularized," said Adrián Tróccoli , a pension lawyer.
“Without a doubt, the most affected are women who may be reaching the age of majority before March. Bringing forward the end of the moratorium takes away that expectation of being able to retire without contributions. And they have to wait until they are 65 years old to be able to access the PUAM,” she added.
