Controversial exchange of ANSeS bonds: Can it affect the payment of retirements?

Although it is said that it is the

, both the payment and the calculation of retirements depend on a set of variables that have nothing to do with the exchange of bonds ordered by the Government or with the value, earnings or losses of the Guarantee and Sustainability Fund (FGS) of the ANSeS.

The FGS is a reserve fund, a kind of countercyclical fund, which

and

pensions that are financed with the personal contributions of active workers, employer contributions, taxes that go to Social Security and, since all those incomes are not enough, also with

For the first time

, in 2019 the National Budget Law authorized the use of FGS resources for the

to affiliates who withdrew from the lawsuits for $73,661 million, 0.5% of GDP.

At the time of retirement, the initial credit is calculated according to the years of contributions of the worker and the updated average salary of the last 120 months.

And that credit is adjusted every 3 months by a mobility formula that takes into account the variation in wages and the tax collection that goes to Social Security.

Between 1994 and 2008, when the private regime existed, the retirement and pension funds managed by each of the AFJPs

of the affiliates who were quota-parts of the retirement fund and respective pension.

At the time of retirement, depending on the value of each member's individual fund, made up of a determined number of shares, the initial credit was fixed and each person "bought" a programmed

Then, in the first case, the periodic variation in the value of the installment affected the monthly payment of the programmed withdrawal;

In the second case, since a life annuity was “purchased”, from that moment on, the life annuity was decoupled from the value of the quota and its payment was assumed by an insurance company.

Despite the fact that

(for example, it was authorized by those caused by the COVID-19 pandemic or the Historical Reparation), Rafael Rofman, who was Head of Studies of The AFJP Superintendency and current principal investigator of CIPECC, told

that the FGS

And he explained: "Retirements are financed with other budgetary resources, from contributions and contributions, specific taxes and, if necessary, Treasury transfers. If the FGS

”.

However, he added, "the measures on public debt taken by the Government last week

but they do not have a direct effect on the pension system, although, of course,

and failing to comply with pension regulations”.

Since 2008, when it received investments from the AFJP, the value of the FGS had

On the other hand, since 2017, due to high inflation, pensions have been suffering a double setback: at the time of collecting the first retirement credit and, thereafter, each time they are adjusted by the mobility index.

At the time of retirement the deterioration already begins

, because the initial credit is determined based on the average salary of the last 120 updated months.

This update is applied based on a coefficient that is calculated according to the salary evolution of registered workers (RIPTE).

And that coefficient has been evolving

.

Consequently

more than significant loss.

Then, that initial credit is adjusted every three months by a mobility index that takes into account the variation in wages and the tax collection that goes to Social Security and that also varied below inflation.

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