What will happen to ANSWER retirement if BASIS legislation is approved in the Senate

Chamber of Deputies approves Title IX repeal of pension moratorium and shape creation Prorated Retirement Benefits For those who have turned 65 and have not completed the required 30 years of contributions to retire. This way, the rules get half approval and if the Senate approves it, it will become law.

Now, what will change if Congress approves this project? To answer this question, it is necessary to review the most important aspects of the project point by point.

project of base law which was discussed chamber of Deputies contemplate repeal of pension moratorium draw more shapes Prorated Retirement Benefits For those who have turned 65 and have not completed the required 30 years of contributions to retire.

Those who fall below that figure will receive the minimum wage equivalent to that age Universal Benefit for the Elderly (PUAM)which is equal to 80% Minimum Retirement ($260,141.60 including reinforcement)

And does not give up the right to widow pension

Basically, repealing the moratorium eliminates the tool that allows those who have not completed their contributions to date to retire.

The moratorium targets two large groups of people. The first is made up of citizens who, despite reaching retirement age, failed to pay the 30 years of contributions prescribed by law. Law 24,241, The second is made up of those who do not yet have an age limit, but already know that they will not reach 30 years of retirement contributions.

In particular, people who are already of retirement age (women aged 60 and men aged 65 or older) can use the moratorium whose quota is adjusted accordingly. “Pension Loan Payment Unit” (UPDP)a value that directly depends “Minimum taxable remuneration”which arrives today $45,281.15,

As per the rules, the fee deducted from each salary payment is equal to 29% of the said non-taxable minimum remuneration. The amount to be deducted today will be $13,131.53 ($29% of $45,281.15).

in the matter of People who have not yet reached the minimum retirement ageThe system is exactly the same, but only those who prove income Which shows the ability to repay the loan.

The Government proposes that the moratorium be abolished definitively and instead made Prorated Retirement Benefits, With this, those who have not completed their contributions will receive a minimum wage equal to Rs. from the age of 65 Universal Benefit for the Elderly (PUAM)

which is equal to 80% Minimum Retirement ($260,141.60 including reinforcement), To put it into context, PUAM beneficiaries will collect $222,113 in May.

Above that level, according to the number of years of contribution Argentine Integrated Pension System (SIPA), an additional fee will be paid. The executive will have to define what amount will be received according to each case. In other words, to cite an example, a person contributing for 10 years will not earn as much as a person contributing to a SIPA for 25 years.

Universal pension for the elderly is a means that ensures monthly income, medical coverage and family allowances to people above 65 years of age. As mentioned, this amount is equivalent to 80% of the minimum retirement ($260,141.60 including consolidation).

In May, the $222,113 in bonuses announced by the government to PUAM beneficiaries will be divided into $152,113 and $70,000.

According to a lawyer specializing in pension matters, andrea falconeRevocation of preliminary adjournment means that 9 out of 10 women will not be able to retire at the age of 60 And if you do not have contributions, or do not have proportionate withdrawal, you will have to wait till the age of 65 to access PUAM. “This is because only 10% of women are able to complete 30 years of contribution when they reach retirement age,” she said.

“But the end of the pension moratorium is not solely a matter of female concern. If the Aadhaar Act is approved, 7 out of 10 men will not be able to retire at the age of 65, have to opt for non-contributory pension or proportionate retirement. The high level of labor informality is the main reason that “capture” of contributions has been allowed through deferral. This is the response the state provides to the lack of control over ‘black’ employment,” he said.

Those who have already retired will not be affected by the change in rules. People who are nearing (or have already reached) retirement age and have not completed the 30 years of contributions required by law will be particularly affected.