What is the Welfare Pension Fund?
To ensure that these people retire with 100% of their salary, the president proposed the creation of a Welfare Pension Fund which would be made up of the money from the liquidation of Financiera Nacional de Desarrollo Agropecuario, Rural, Forestal y Pesquero (Finrural).
“The Pension Fund for Wellbeing will be a public trust not considered a parastatal entity, where the Bank of Mexico (Banxico) will act as trustee,” the document states.
Now, deputies Ignacio Mier and Angélica Cisneros propose that this Welfare Pension Fund also be funded with resources from workers who have not received their pension and who are over 70 years old.
To do this, they seek a reform to the Social Security Law (to obtain the resources of those who contributed to the IMSS), another reform to the ISSSTE Law (to obtain the resources of State workers) and another to the Law from Infonavit (to have the resources administered by that Institute).
What does Morena's Afores initiative consist of?
The proposal indicates that the money of workers who contributed to the IMSS, who are 70 years old and who have not completed their pension process will automatically go to the Welfare Pension Fund.
“The Fund Administrators (Afores) must transfer the resources of the subaccounts at the time the workers turn 70 years old, without the need for a judicial resolution to the Welfare Pension Fund, and must notify the Institute of each transfer on the same day it is made.” says the proposal.
For ISSSTE workers, the money will be transferred in the same way only as for workers over 75 years of age.
Will they expropriate my Afore?
The document is a proposal and has yet to be approved by the plenary sessions of the Chamber of Deputies and Senators.
The document also highlights that if the worker's money was already in the Welfare Pension Fund, it can be recovered.
“The worker, and where appropriate, his beneficiaries may go to the Institute to access the refund mechanism permanently and – if appropriate – the Institute will recognize the amounts to be paid,” the initiative states.
It is important that if you have an Afore account, you update information such as beneficiaries. You can register parents, children, siblings or spouses, so that in case of death, they can receive that money.
For now, the accounts of people under 70 years of age are safe and will not be used to finance the Welfare Pension Fund.
