While the Minister of Economy, Sergio Massa, creates new taxes to give bonuses to retirees, a official project to add a third moratorium to the two already in force heavily defunds the pension system.
The Senate has already given half sanction to a government project called “Social Security Debt Payment Plan“, which proposes the acquisition of a Payment Unit and a Contribution Cancellation Unit for active workers, followed by installments for 120 months.
The radical deputy Marcela Coli considered that “where we must think and focus is on the specific point on the exact financing of the project and How would it economically affect the pension system?“.
For Deputy Coli, the key is “how many of the 800,000 individuals, who according to the promoters of the project could benefit from the benefits, could face the payment of the tax base of the remuneration“
On the other hand, the radical legislator emphasized that, for the budget of the ANSeS, the new moratorium will represent an investment of $12,260 million this year and $184,844 million in 2023which is higher than the 2021 deficit of the pension agency.
Moratoriums of the ANSeS and the workers who contribute
The specialist in pension matters, Marcela Fernández Cerone, recalled that There are already two moratoriums in force, one of a permanent nature and another that can be extended every 2 years. The latter is today extended until next December.
The ANSeS is responsible for administering the SIPA (Integrated Argentine Social Security System), guaranteeing the granting of social security benefits such as retirement, pension, disability withdrawals.
The pension system is contributory, with contributions from active workers who enter the main, although not exclusive, component that finances the benefits grantedFernandez Cerone recalled.
The pension moratoriums and the ANSeS red
Based on the Congressional Budget Office report, in 2021 it had 9,905,315 unique contributors representing 10,164,776 jobsof which 93% contributes to the general scheme.
In 2021, the system had 5,420,234 liabilities that receive 6,625,136 benefits granted between retirement and pensions.
The ANSeS presented a deficit of $144,016 million, that is, the system covers only 51.6% of the benefits that is paid, señaló Fernández Cerone.
If you want to get out of this deficit, you should increase it by 26 average percentage points over current wageshe claimed.
On the other hand, the ANSeS reported that due to the pro-government project 800,000 people would be incorporated into the retirement systemwithout neglecting the recent 9 million that were incorporated into the agency’s investments for the Economic Reinforcement or “fourth IFE”, according to Fernández Cerone.
“Without projects dealing with asset growth, it begins to be questionable to accompany the project with half a sanction from the Social Security Payment Unitwhich seeks your support in the Chamber of Deputies,” said the expert in a report to legislators from the Social Welfare Commission.
89% of pension assets paid by the ANSeS represent benefits achieved under the current moratoriumsI consider.
Why the payment of future retirements is not financed
In the moratoriums in force, the future retiree only pays “in cash” the first installment of between $300 and $600as a prior step to the Social Security Benefit Request, and then a 60-quota plan is granted.
So the ANSeS is the one who pays the minimum benefit, acting as withholding agent during the remaining 59 months.that is, it pays approximately $37,000 to the holder of the benefit, causing a definancing of the system, Fernández Cerone stressed.
Also, after these 5 years of “poor retention” the agency begins to pay 100% of the benefit. The life expectancy of a person in our country is 80 years, that is to say that the organism “finances the benefit” a little more than 20 years to a personhe remarked.
Due to life expectancy, the ANSeS will finance moratoriums for 20 years without resources
The keys to the new moratorium promoted by Peronism
The Social Security Debt Payment Plan project increases the number of installments raising the regularization to 120 installments.
The periods to be included in the plan will include periods that are prior to December 2008 inclusive for those who adhere to a Social Security Payment Unit that is created and prior to March 31, 2012 for the cancellation of contributions.
In the case of Payment Unit, will govern for a term of two years counted from the entry into force of the law and may be extended for the same period.
To access that Payment Unit, it will be necessary for them to reach retirement age or to reach it within two years from validity.
Similarly, will have the right to acquire the Payment Unit those rights holders social security, provided that there was prior registration of the cause of death as a member of SIPA.
To access the Contribution Cancellation Unit, meanwhile, it will be necessary to be over 50 years of age for women and 55 for men and under 60 for women and 65 for men..
The rise in quotas to 10 years further defunds the pension system
Can the new moratorium be replaced with the Monotax?
How can you start paying the pension payment units if within 2 years the holder reaches retirement age, it is not profitable for the ANSeS since it pays 24 months in advance and the possibility of regularization rises to 120, said Fernández Cerone.
Furthermore, the value of the Payment Unit will be equivalent to a value of 29% of the minimum tax base of the remunerationwhich is currently $12,638.40.
But whoever has 29% of the minimum tax base that is intended in said project, suggests that, who has $3,665.13 to acquire the Pension Payment Unit could well have been registered in category A of the MonotaxFernandez Cerone calculated.
On the other hand, it is It is questionable that, if they can access the Social Security Payment Unit, they will pass the socioeconomic report positively established for the entry to the current moratoriums and that in the new project is maintained, he warned.
Another aspect is the minimum requirement designed to grant access to said payment and/or cancellation unit, increase in fees, plus the null result of the socioeconomic report would make a exponential increase in the granting of benefitshe underlined.
The inequity of the moratorium with retirees who contributed
“With this new pension part, substantive issues such as the amount of benefits that are neither sufficient nor proportional, if we think of it in terms that those who have contributed their entire lives without having access to a moratorium,” said Fernández Cerone.
The moratoriums are inequitable for those who contributed their entire working life
“Los The assets of the retirees who contributed have been relegated and forgotten in their updating, the beneficiaries capped, not to mention that the current mobility indices are not representative nor do they solve the problem of the amount of the initial asset that should systematically be granted compensatory bonuses that is, patches upon patches,” he emphasized.
“The legal nature of the pension system has been forgotten, its why, what for, its essence and representation,” he said.
“These forgotten issues do not contribute to the protection that society needs from the pension agency, being this representative of all citizens not only a group that serves political purposes“, he concluded.