MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador stated on Tuesday he hopes to current a brand new fund aimed toward boosting the decrease pensions within the system on Might 1, a month forward of presidential elections.
The creation of the fund, which is a part of a pension reform proposed by the president in February, was accredited on Monday by the nation’s decrease home. It now must be handed by the Senate.
“I hope that on Might 1, Labor Day, we will current a report back to employees and provides them the excellent news, that their pensions are assured and that they may even be elevated,” Lopez Obrador stated at a press convention.
The opposition has warned that the transfer may put employees’ financial savings managed by non-public corporations in danger, a declare denied by the federal government.
The administration hopes to initially pour some 40 billion pesos into the fund, representing the unclaimed financial savings of employees aged 70 or older. With the sources, it seeks to make sure that employees who earn as much as 17,000 pesos ($1,001.77) a month get 100% of their wage once they retire.
Some opposition lawmakers criticized the invoice’s speedy approval by the decrease home as politically motivated and unconstitutional.
Lopez Obrador acknowledged there’s a threat that the Supreme Court docket may declare it unconstitutional.
Mexico’s affiliation of retirement fund entities stated final week that people continued to have management over their accounts and that will not change with the brand new initiative.
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On the finish of March, the non-public system managed greater than 6.1 trillion pesos ($359.46 billion).
($1 = 16.9699 Mexican pesos)
