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Increases for retirees: keys to the new mobility formula

2020-12-28T19:14:06.331Z


Assets will have a real increase if wages and tax collection rise above inflation. But there will be no clause that protects them from price increases.


Ismael Bermúdez

12/28/2020 14:00

  • Clarín.com

  • Economy

Updated 12/28/2020 2:49 PM

On Tuesday, the Chamber of Deputies would approve the

pension mobility law

without changes, as

approved

by Senators.

If so, starting in January, retirements, pensions, family allowances, AUH, Universal Pension for the Elderly (PUAM) and non-contributory pensions - an inverse of 18 million people - will be adjusted

every three months

, in

March, June, September and December

according to a new formula.

The outstanding points for the calculation of future increases are

salaries

, the

tax collection

that goes to the system and the

total income of the ANSeS

.

The increases in March, June and September will depend on the first two of these variables (wages and collection).

In December there will or will not be an adjustment according to what happened with the third variable, the total collection of the ANSeS.

Although the new formula is similar to the one applied between 2009 and 2017, it contains some variants.

It establishes that the increases will be calculated

at 50% according to the variation of the INDEC and RIPTE Social Security salaries

, of both the best, and

the other 50% according to the variation of the tax collection that goes to the ANSe

S, by beneficiaries.

But, in December,

the increase in assets for the fourth quarter of each year will

be compared

with the total interannual collection of the ANSeS, less the increases of the three previous quarters

.

And in that case, for December, the

lower percentage

will be chosen

.

Thus, for example, if the first three quarterly increases yielded a rise of 25 points, that of the fourth quarter of 5 points and the total interannual collection of the ANSeS was 26%, the increase in December

will not be 5 points, but only 1

, that is, it will have a discount of 4 points.

Instead of 30, the increase will be 26.

Meanwhile, if it were the other way around, and the ANSeS collects more, for example, 32%, the December increase of 5 points

remains unchanged

and that of the year remains at 30.

Ultimately, at the end of each year, the increases could be

less

than the improvements of

active workers

, or less than the growth of

ANSES collection

.

For example, in 2010, 2011, 2012 and 2014, pensions

increased less than formal wages

.

In 2013, 2016 and 2017

the opposite

happened,

and

in 2015 there was a

tie

.

Inflation

Regarding

inflation

, the formula does not contain any

compensation

clause

for the rise in prices.

If the increases in pensions and other benefits are

less

than inflation,

there is no correction of assets

and the beneficiaries of the whole system - 18 million people - will have a

real fall

in the benefits they receive.

This is what happened in

2014

and

2016

when inflation was between

8 and 9 points higher

than the increases in the formula.

What can happen

If wages and tax revenues grow

above

inflation, retirees and other beneficiaries will have a

real increase

in their benefits.

But this increase could be

less

than the improvement in salaries, if the total income of the ANSeS is lower and in December an

adjustment

has to be made

.

If the opposite happens, and inflation shoots up, they

will lose again in real terms

to the increase in prices.

In periods of

expansion and low inflation

, pensions and other social benefits will have a

real increase

.

And in

recessive

periods

and high price increases

, they will have a

strong real fall

due to the absence of an inflationary floor.

In addition to the fact that the lowest percentage is applied between the first tranche of the formula and the total collection of the ANSeS.

Upgrade

The law does not contemplate

any recomposition

for the loss

suffered

by all the beneficiaries of the system with the change of the formula during 2018 and 2019 and with the increases by decree of this year.

Between 2018 and 2019, all pensions and social benefits

had a loss to inflation of 19.5%

.

And with the 4 increases by decree of 2020, the minimum pensions had an increase of

35.3%

and the maximum ones of

25.3%

.

Consequently, depending on what the inflation figure for December shows, the minimum retirement could be tied to the rise in prices, but

retirements above $ 20,000 will have a loss

that in the case of the maximums could be

10 points

, above what was lost during 2018 and 2019. And as future increases will be granted on pension levels at different depressed levels - between 19.5% and 24.5%, without any recomposition - 

the loss of the last three years will be last for life.

Look also

Retirees: in the ruling party they want changes in the mobility formula approved by the Senate

Source: clarin

All business articles on 2020-12-28

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