Pension reform could be seen as ‘indirect appropriation’ of savings, warns CTM

The Confederation of Mexican Workers (CTM) expressed its concern about the pension reform proposal and advocated for a national tripartite dialogue.

The CTM firmly expressed its concern, and at the same time its willingness, for a national tripartite dialogue that involves employers, government representatives and unions, in the face of the recent initiative to reform the Pension System that is being discussed in the Chamber of Deputies. He considered that beyond any partisan or political agenda, we are talking about the economic future of millions of Mexican men and women.whose retirement savings require extremely responsible and transparent management.

He indicated that the proposal to create a “Pension Fund for Wellbeing” deeply worries him, considering that this model excessively centralizes pension resources under the control of the Mexican State, which can compromise the autonomy and financial security for the retirement of the Mexicans. In addition, he explained that the transfer of capital from various sources is proposed, such as that of the Aforeswithout clear mechanisms for their return if they are claimed, which can be interpreted as an indirect appropriation of workers’ savings.

Likewise, he pointed out that there is no certainty that said fund has enough money to guarantee good pensions in the future.

“The possible accelerated increase in spending commitments and the increase in the budget in this area, If the reform succeeds, it is a threat to the viability of public finances. The CTM disagrees with a proposal that lacks financial support and that could endanger the pensions of our retirees and future generations of workers,” the union said.

“At the CTM we look to the present with the firm conviction that together we can build a pension system that not only meets current needs but also guarantees the security and prosperity of Mexican families. This is the time to show that our collective strength is greater. We will not allow half-hearted commitments to define our destiny. For a fair and sustainable pension system! “He added.