The Mexican Association of Aphores (Amafore) has a comment on the National Commission for Regulatory Improvement (Conamer) on the preliminary draft of the National Commission of the Retirement Savings System (Consar) to create the figure of the “Social Security Advisor” and declare that he was not against the said amendment.
“Amafore shares the goal that Consar strives with the issuance of the aforementioned concept, in the sense of, in the best possible way, to serve the interests of the workers by training and evaluating the promotion agents to increase the quality of the services provided by the latter ”, reads in the document.
Amafore, however, considers it relevant to point out that the promotion agents are a figure of the Retirement savings system (SAR) which is expressly provided for in the SAR Act and “whose purpose is to provide advice to workers to make informed decisions”.
In the draft, Consar explained this the new figure of “Social Security Advisor” does not imply additional costs to the administrators. Similarly, it will avoid inefficient competition and unfair practices; Social security education for workers will be promoted and the incentives to promote agents will be focused.
“Despite the fact that it fully coincides with the listed objectives, it is considered that these objectives are not necessarily achieved with this preliminary project,” reads the Amafore document.
Change in the compensation system
Likewise, the concept was set out that there would be a change in the remuneration regime which stipulated that the Afores would pay the commission to the agent for two reasons: the registration of the individual accounts they were carrying out and the Voluntary Savings Contributions what the worker does.
Thus, with this amendment, the promoter agents will stop charging commission for the transfer of accounts. This change will affect the 43,395 promotional agents registered with the SAR.
Given this, the Amavoor He declined to comment on this change in the compensation system, adding that “some Aphorisms do not agree with it, so they can send their individual comments on this aspect.”
At the same time, an Aphore stated his position to Conamer, stating that the creation and incorporation of the “Social Security Advisor” violated the guarantees of legality in Article 16 of the Constitution.
As well as “the principle of Normative Hierarchy Normative” of section 133 of the Magna Carta, as the figure of pension adviser is not provided for in the SAR Act and it is therefore legally untenable to establish a legal system by means of a general provision search, the fund manager said.
The Consar estimates that variable reimbursement expenses to promoters by the Aphoras ranged from 2,830 to 3,870 million pesos from 2015 to 2021. This resulted in an average cost of 3,340 million pesos in that period.
Reduction in expenses
The “Social Security Advisor” will generate a reduction in spending in the Aphoras and will simplify the regulations for SAR participants. The sum of the savings due to deregulation would amount to 27.2 million pesos and would leave benefits for 3 340 million pesos, according to the SAR regulator.
Similarly, the cost of affiliation and transfers from the fund managers exceeded 9.325 million pesos, in 2021 alone.