“We have taken the measure of the 5% increase for retirements. This gives an increase to the minimum retirements of 35.3% so far this year. In this way, 75% of pension benefits beat inflation “Cafiero said during a press conference at the Casa Rosada.
“We are rebuilding the losses in pension assets that have been trailing since 2018 and 2019, which, in real terms, were 19% with the formula of the previous government,” added the Chief of Staff.
It should be remembered that Mauricio Macri’s current formula gave a 4.5% increase for December, a formula that is frozen and that, thanks to increases by decree and indirect salaries, retirees had a 28.9% to your retirement assets until November. With the new 5%, pensions will go up more 35% in 2020 recovering its purchasing power for the first time in four years.
Cumulative inflation so far this year is 26,9%. Only in the first 10 months of the year, estimating inflation for 2020 of less than 33%.
The new increase will also reach the beneficiaries of non-contributory pensions, Universal Child Allowance (AUH), Universal Pregnancy Allowance (AUE) Y SUAF. The increase will reach, in total, 7.1 million retirees and pensioners and 8.8 million young people who receive universal allowances.
With the new increase for the month of December, the minimum credit will be $ 19,035, in this way and more than 70% of retirees will have increases above inflation.
With the political objective of targeting a solidary and redistributive pension system, for the first time in decades, in a state of absolute crisis, we see month by month how the application of social policies that target the most vulnerable sectors can make a difference and achieve more than positive changes.
This will be the last increase by decree that is dictated on retirement assets before the treatment of the Retirement Mobility bill that the Government will send to Congress in the next few days and that establishes a new pension adjustment formula
Lastly, Raverta said that, “With the announced increase, plus the half bonus, the vast majority of retirees and pensioners will be receiving about $ 28,500” in December.
The new pension mobility proposal promoted by the Government provides for a six-month adjustment that will be determined through a formula that will include, in equal parts, the evolution of wages and tax collection.
This formula has as a precedent that established by Law 26,417, in force from 2008 until its repeal in 2017, with pension adjustments in March and September and its basic constituent elements: wages and collection.