05/05/2020 - 13:43
- Clarín.com
- Economy
- Economy
This Friday, in virtual form, the Government Commission and Congress meet to define the bill for the future mobility formula, replacing the previous one and the increases by decree of the President. The majority position is to postpone the approval of this formula until the end of the year and that, in addition to the June increase, the Government continue with the increases by quarterly decree, from September and December.
This is how official sources told Clarín . The argument is that due to the fall in labor and worker income, tax collection and Social Security and economic activity, any formula that takes these indicators into account would yield negative figures.
Instead, without being tied to a rigid formula - they argue - the Government can continue with the increases by decree that take into account the new economic and income reality that was generated among the 6 million retirees and pensioners and other beneficiaries of Social Security .
Why don't they approve a formula that adjusts for inflation benefits? Clarín asked.
-Inflation as the only adjustment index was ruled out to “de-index” the economy. The ideas that were considered for the new formula combined wages, collection or activity that, today, are with negative real variations. And in this context, applying a valid formula for normal moments would harm the beneficiaries of the system, they responded.
According to the Emergency law, which suspended the mobility formula for 180 days, the national Executive Power had to convene a commission made up of representatives of the Ministry of the Economy, the Ministry of Labor, Employment and Social Security and members of the committees of the Congress of the Nation to propose a bill for the mobility of pension assets in accordance with the principles of "solidarity and redistribution".
That commission, in a virtual way, will meet on Friday and will postpone the elaboration of the formula for the month of December.
Meanwhile, it is discounted that, as happened with the increase in March that was 2.3% plus a fixed amount of $ 1,500, the increase from June and also those of the second semester will again combine a percentage plus a fixed amount .
Thus there will be a new flattening of the pension pyramid because the "principles of solidarity and redistribution" imply that those who earn the most receive a lower percentage in relation to the lowest assets.
If the suspended formula had been applied, the increase in March would have been even of 11.56% and that of June, of 10.9%, according to the index of the suspended formula that was formed by 30% due to the evolution of Formal wages according to the Average Taxable Remuneration of Stable Workers (RIPTE) and 70% of inflation between October and December 2019. With the increase by March decree, it was estimated that, with 2.3% plus $ 1,500, about 2.7 million retirees and pensioners received less than if the suspended formula had been applied . In contrast, 4.5 million retirees and pensioners received up to 13% more.
This flattening of the pension pyramid meant a fiscal adjustment of the order of 5,000 million pesos per month because the differentiated increase represented a global increase of 9%, compared to 11.56% for the suspended formula. But in global terms, that adjustment was offset by the payment of the bonus of up to $ 3,000 that was granted to retirees who earn up to $ 18,892 and the bonus of $ 3,103 for the 2.2 million parents who collect AUH for 4 million of boys.
The mobility includes 18 million retirees, pensioners, beneficiaries of Family Allowances, AUH, PUAM (Universal Senior Adult Benefit) and non-contributory pensions.
NE