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Retirements: by means of a DNU the increases by decree are extended until the end of the year

2020-06-15T06:42:28.791Z


It is because the new adjustment formula has not yet been established to replace the one that has been in force since December 2017. Medium and high retirements continue to lose with the increases dictated by DNU and the pyramid is flattened.


Ismael Bermúdez

06/14/2020 - 9:46

  • Clarín.com
  • Economy
  • Economy

By means of a Decree of Necessity and Urgency (DNU), the Government will extend until the end of the year the power of the Executive to grant by decree increases in retirement, pensions and other social benefits.

The DNU route is explained because this Saturday the 20th expires the period of 180 days of suspension of the pension mobility formula set by the Emergency law enacted on December 23, 2019.

During this period, a Commission made up of members of the Executive Power and Congress should propose a bill with an alternative formula . That Commission - with the dissent of the opposition - failed to elaborate a common project and at the beginning of this month the Executive sent Congress its own project that extends until December 31 the suspension of the mobility formula approved in late 2017. And determines that until the end of the year the next quarterly increases - from September to December - will be set by decree by the Executive Power again.

As this project has no chance of being approved this week (it still does not have the opinion of the Social Security and Deputies Commission of Deputies, and then it should be approved in Deputies and then in the Senate), through a Decree of Necessity and Urgency , the Government will extend the suspension of the formula and will continue granting the September and December increases by decree, official sources confirmed to Clarin .

Otherwise, the mobility formula would reign, which, as Clarín announced , for September shows an increase of 9.88%.

The increases by decree were established by the Emergency law, and were applied in March and June, accumulating a rise of between 10.2 and 19.9%, according to the ranges of assets . With the suspended formula, 23.72% corresponded to all retirees and pensioners of the general regime and other social benefits.

Thus, the accumulated increases by decrees were lower than those accrued by the suspended formula , deepening the 20% reduction that assets had during 2018 and 2019. For example, the minimum credit since June is $ 16,864 and with the suspended formula It should be $ 17,405. A difference of less than $ 541.

Those who received $ 30,000 in February, for the next 3 months will charge $ 2,956 per month less. With $ 50,000 having been received in February, the loss rises to $ 5,988 for the next three months. For retirees with higher salaries, they have a difference of less than between $ 5,988 and $ 14,032 per month.

Mobility comprises 18 million benefits , including retirees, pensioners, non-contributory pensions, PUAM (Universal Senior Adult Pension), AUH and Family Allowances.

In the foundations of the Executive project, which will now be those of the DNU, it is argued that within the framework of "the reality imposed by the global pandemic of COVID-19, it is absolutely impossible, not only to build a serious, reasonable and enduring, but only to foresee or predict how the economic variables will behave in the coming months in order to determine, a priori, serious guidelines to technically, economically and politically base the quarterly adjustments established by law ”.

The text indicates that the vast majority of international mobility experiences “use the variation of some wage or price index or a combination of both, also finding some examples that take the variation in collection or in the Gross Domestic Product as the basis for upgrade". And all those indices are distorted by the situation created by the pandemic.

However, last week, Congress approved the "mobility" of rental prices with a formula that combines, in equal parts, inflation and wages.

The text of the Executive adds that with the extension of the suspension almost the end of the year the Commission that must develop a new mobility formula will have "more time" to analyze and approve "the guidelines for updating or mobility of the benefits of the special regimes ”, Referring, among others, to the regimes of teachers, university professors, and Luz y Fuerza that have their own mobility formulas that were not suspended by the Emergency Law.

Source: clarin

All business articles on 2020-06-15

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