The Government estimates that 800,000 people will be able to access the new moratorium
The Government estimates that 800,000 people will be able to access the new moratorium

The National Government promulgated this Tuesday the new law of pension moratorium which was sanctioned by Congress weeks ago and for which the Executive Branch estimates that it will benefit around 800,000 people.

The promulgation was carried out through the Decree 132/2023which was published this Tuesday in the Official bulletin and that had the signatures of President Alberto Fernández, the Chief of Staff Agustín Rossi, and the Minister of Labor, Kelly Olmos.

The delay had caused critics from the K wing that is part of the government alliance. The person in charge of expressing them publicly was maximum kirchnerwho on Saturday in Avellaneda, within the framework of the operative outcry for Cristina Kirchner to be a candidate for president, warned that the moratorium had not yet been enacted despite the endorsement of Congress.

Two days later – on Monday night – the statement from La Cámpora emerged, which was more explicit in the claim: “On February 28, 2023, we achieved the approval of the law that will benefit 800,000 Argentines. Let’s hope the Presidentwho requested the treatment of the project in extraordinary, now enact it”.

In the same text, The Campora pointed squarely against the IMF: “The same organization that decided to give the largest loan in its history in such a short time speaks of a Pension ‘unforeseen’ moratorium LAW to ensure fiscal targets. Well then, what does ‘unforeseen’ mean for the owner of the Fund and her expensive technicians?

Máximo Kirchner greets during the plenary of the militancy that was held on Saturday in Avellaneda, under the slogan "fight and come back" to request that Cristina Kirchner be a candidate for president (Photo: Aglaplata)
Máximo Kirchner greets during the plenary session of the militancy that was held on Saturday in Avellaneda, under the slogan “Fight and return” to ask that Cristina Kirchner be a candidate for president (Photo: Aglaplata)

The pension debt payment plan is aimed at citizens who, despite having reached retirement age, did not manage to pay the 30 years of contributions dictated by the law 24,241; and women between 50 and 59 years old, and men between 55 and 64 years old, who still do not have the age limit, but already know in advance that they will not reach 30 years of retirement contributions.

According to the legislation sanctioned on the last day of February, those who agree to the moratorium will not be able to pay installments owed in the last decade, but must go back to previous periods. The first group of beneficiaries (those who have already reached retirement age) will be able to regularize the debts of contributions prior to December 2008. The payments will be deducted directly from the retirement that they will receive monthly.

While those who are less than 10 years from reaching retirement age, they will be able to regularize pending payments prior to March 31, 2012.

According to Anses estimates, with the Pension Debt Payment Plan some 800,000 people who this year reach the required age will be able to access the cancellation of their pension debt to retire. And another 900,000 will be able to identify missing contribution periods and cancel them early before reaching age.

Of the total of the 7.2 million current retirees, 50% entered the system through moratorium laws, according to the agency’s data. In Argentina, people who reach their retirement age with 30 years of contributions are the minority: only one in 10 women and three in 10 men. In addition, on average, Argentine workers have between 14 and 17 years of contributions.

The provisional debt payment plan for those who are already of retirement age will make it possible to pay the contributions owed in monthly installments. This contribution is calculated by a provisional debt payment unit (UPDP). The amount for each month owed is equal to 29% of the minimum taxable remuneration, which is equivalent to about $5,730 as of March of this year.

The total debt can be paid in installments, with a minimum of two and a maximum of 120, according to the number of years that you want to pay. The value of the fee is then adjusted quarterly according to mobility.

For example, if a person owes 10 years of contributions, the calculation is payment unit (UPDP) multiplied by 12 and then multiplied by 10. The result is the total debt and then the person chooses in how many installments they prefer to pay it (with a maximum of 120 installments). Each installment is deducted from your credit on a monthly basis.

Another case is that of a person who has 25 years of contributions and has to “buy” five years. If he chooses to pay in 30 installments -equivalent to 30 months in which the credit installment is discounted- he will have a credit discount of approximately $11,000. If you choose in 60 installments it will be just over $5,000. After those 30 months, it begins to collect the total credit.

After publication in the Official Gazette, now the Anses must report the procedures to be able to access the payment plan.

Keep reading:

The new pension moratorium: how much the State spends on pensions and what impact the new law will have

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