The pension reform proposal before the desk of Economy Minister Luis Caputo proposes amending old-age pensions with The minimum elements that allow the contribution requirement to be waived for 30 yearsEliminate private systems and professional funds.
He also finds it necessary Reducing duplication of benefits with widows’ pensions Generally eliminating the benefit of young couples.
Among the special regulations intended to be reviewed and eventually abolished, the following are mentioned:
- Differential systems
- Ansys special offers
- Armed Forces and Federal Security Forces
- Governorate funds
- Professional boxes
- Non-contributory (PNC) pensions
- Southern region
The proposal was submitted by the Center for Public Policy Implementation for Equity and Growth (CIPPEC).
What is the prognosis of the current retirement system?
The Argentine system is classified as Expensive, unfair and ineffective He describes:
Consolidated spending on pensions in Argentina was 12.1% of GDP in 2020, deflated by inflation to 8.8% in 2024, but is expected to start increasing again in 2025. (9.4% of GDP) due to the impact of mobility and renewal.
total Beneficiaries: 9,702,854 peopleWith total spending equivalent to 8.8% of GDP.
Exception systems (including differential systems, special ANSES, federal armed and security forces, regional funds, occupational funds, non-contributory pensions and the Southern Region) account for 40.3% of total cases (3,910,406) but consume 55% of total expenditure (4.8% of GDP).
The public system includes 59.7% of cases (5,792,448 retirees). Beneficiaries of the endowment 43.7% Of the total (4,240,901).
The striking comparison suggests that if every Argentine over the age of 65 received $700,000 a month, total spending would be 30% less than current spending on retirement and pensions. This difference is explained by beneficiaries under the age of 65 (2.8 million). Dual benefit beneficiaries (at least 1 million) and exception systems.
What is the proposal to reform the retirement system?
The text provides a detailed analysis of the need for Reorganization of the Argentine pension system It presents CIPPEC’s proposal to achieve a just and sustainable system
The pension reform proposal seeks to regulate and reduce pension spending through the following measures:
Changes in exclusion systems
- Stop approving new exclusion systems.
- Decide What systems should be maintained And setting clear rules for financing it.
Changes in old age retirement
- – Cancellation of the minimum period of 30 years of subscriptions.
- Create a universal component with a value close to the current Universal Benefit for Older Persons (PUAM) for all residents of retirement age.
- Create a A contribution element that rewards all contributions to make.
Changes in death and disability pensions
- Abolition of pensions In order to die for life for young couples.
- Reducing duplication of benefits.
- Adopt strict rules for non-contributory (PNC) disability pensions.
- Enabling voluntary retirement savings as a supplementary scheme.
Changes in mobility.
- Guaranteed purchasing power based on the Consumer Price Index (CPI).
- Incorporate adjustments for real wages (in percentage).
- Eliminate lag and procyclical factors.
Who wins and who loses
The winners are 80% of current active workers, namely those with less than 30 years of contributions, those in “regular” occupations, unilateral contributors, and those deferring retirement.
he 20% losers with the proposal They are workers with 30-year contributions who retire at the minimum age, those whose salaries increase rapidly at the end of their careers, women aged 60-64 years, and employees of differential systems (district governors, teachers, judges).
As for current retirees, Acquired rights are not affected.
The text provides a comprehensive analysis of the need for pension reform in Argentina, arguing that the current system is expensive, unfair and inefficient, and shows what is the uniform pension expenditure in Argentina as a percentage of GDP and the distribution of beneficiaries in different systems, highlighting the high proportion of exclusionary systems.