The reform to the Social Security Law (LSS), approved by the Union Congress in December 2020, helped 28,272 workers to be entitled to a pension since they did not meet the previous requirement of at least 1,250 weeks of contributions.
The Mexican Social Security Institutethrough David Méndez Santa Cruz, head of the unit of economic benefits and health at work of the IMSS, revealed that if the reform had not been carried out, only 1,448 cases covered the goal of 1,250 weeks.
At the Retirement and Health Seminar 2022, organized by the Mexican Association of Consulting Actuariesthe IMSS updated the figure revealed by the eat of the first Afore generation, which went from 27,396 to 29,720 workers, at the end of 2021.
“In January we already granted 1,458 Regime 97 pensions, of which 1,329 had less than 1,250. In other words, these workers would not have obtained a pension if there had not been the 2020 reform,” said Méndez Santa Cruz.
It should be remembered that the pension reform reduced the contribution weeks from 1,250 to 750 in 2021. Starting this year, the contribution weeks will increase by 25 weeks until reaching 1,000 in 2031.
Likewise, the average amount of the pension granted was 4,734 pesos with a replacement rate of 75%, according to IMSS data. In addition, it was revealed that only three people decided to retire with a life annuity higher than the guaranteed minimum pension.
According to data provided by the IMSS, the people who receive a pension from 1.5 to 1.99 Updating Measurement Unit (UMA) are 13,323 people; from 2 to 2.99, 6,506; from 3 to 3.99, 3,503; from 4 to 4.99, 2,003; and from 5 onwards, 4,382 people.
The 2021 UMA is equivalent to 89.62 pesos; while for 2022, 96.22 pesos, according to data from the National Institute of Statistic and Geography.
At the same time, it was reported that of the 111,302 procedures carried out, some 81,582 people, who contribute to the 1997 Regime, received a pension refusal since they did not comply with the 750 weeks of contributions.
“When there is a pension denial, workers can go to the branch of their fund manager to be able to withdraw their resources, but to do so it is a requirement to have a pension denial,” said the IMSS official.
The accumulated balance of the more than 81,500 people was 57,149 pesos, on average, they detailed at the event.
Meanwhile, the first generation of pensioners through Afores represented 11% of the total pensions granted in 2021 (268,209 pensions).