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Argentina Announces 12.49% Increase For Pensioners

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Open Eyes Opinion {source: ARgov}



12.49% rise in September the pension

As stated in the Act mobility retirement, President Cristina Fernandez de Kirchner said the second annual increase for pensioners shall be 12.49%. The minimum goes from $ 3,821 to $ 4,299.

President Cristina Fernandez de Kirchner led a ceremony at Government House with the chief of staff, Anibal Fernandez ; the Ministers of Economy, Axel Kicillof , and Industry, Debora Giorgi ;and the head of the Anses Diego Bossio.

There have reported that the minimum for pensioners will become effective 1 September 4299 pesos, which means an increase of 12.49 percent. This is the second annual increase established by the law of mobility retirement. In addition to the first assigned in March it was 18.26%, the annual aggregate is 33.03 percent.

During the speech which was broadcast on national TV, the Head of State explained that the average benefit more than eight million pensioners and involves an additional annual investment that already had projected 174 817 000 pesos.

“Argentina’s pension investment for 2015 will amount to more than 551.531 million pesos for retirees,” said the first president.

He noted that “for greater coverage is universal, with 97% coverage for retirees of Argentina”.

Thus, the minimum pension went from $ 3,821 to $ 4,299; the maximum have passed 27000-31000 pesos, and the average have increased from 6811-7761 pesos.

The Head of State pointed out that the minimum pension dollar in 2003 was $ 61.26; in 2009 it was $ 217, and now the retired $ 470 charge.

Previamtente President Cristina Fernandez de Kirchner had communicated via videoconference with the industrial plants of Mercedes Benz in La Matanza; Fontenla House in Berazategui; Vasile and Co in Pilar; and Diransa in Pilar, four located in the Province of Buenos Aires.

Pension mobility index

Law 26,417 establishes for calculating mobility two components: increasing salaries last semester and increasing the resources of the pension system. If you had applied the formula of taxable income Average regular workers (RIPTE) instead of index Retirement Mobility between March 2009 and September 2015, the increase for pensions would have been 510% instead of 523% . And the minimum would be in September $ 3,933 instead of $ 4,299.06. Or, if instead they had applied the Salary Index (known as Badaro to adjust pensions), the total increase between 2009 and 2015 would be 443%, resulting in the minimum retirement $ 3,418 in September.

In this context, developments have minimum was 2760% between March 2003 and September this year, as it rose from $ 150 to $ 4,299.06, while the average being 1560% increase over the same period (from $ 460 to $ 7,661.99). Moreover, the evolution of the minimum dollar have had an increase of 678% between 2003 and 2015, from USD 61.26 to USD 470.35.

The Act provides further that the pension mobility can never be negative, ie, if for a period the evolution of the economic variables are negative, the assets of retirees not decrease.

Another element that allows the increase to retirees is the growth of contributors, which went from 4,535,325 in April 2002-11439442 in April 2015 (152% more).

In Argentine households, 78.2% who it has a pension income over at least perceived to have. Since the implementation of the Law on Mobility, the pension restructuring have had a strong relation to the Living Wage and Mobile, as it rose from 62% to 77.7%.

It is worth mentioning also that the rate of total retiree coverage rose from 67.8% in 2006 to nearly 97% this year, largely due to the two stages Pension Plan Inclusion. The number of pensioners has doubled since 2003, as they rose from 3,195,954 to current 6.45069 million, representing an increase of 102%.


[photo credits: “Buenos Aires Décembre 2007 – Avenida 5 de Mayo” by Martin St-Amant (S23678) – Own work. Licensed under CC BY 3.0 via Wikimedia Commons –]



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