Those retiring starting this month will receive a their effective initial is still low. The Government has adjusted the remuneration update coefficient used to calculate the starting salary of new pensioners by 28.6% for the period March/May 2024, according to Resolution 117/2024 of the Ministry of Human Capital, published in the Official Journal.
This coefficient will be applied “to update the monthly salary received by workers in employment who cease from 29 February 2024 or request the benefit from 1 March 2024”, we read in the Resolution.
AS, At the time of retirement, the worsening of the pension begins. The initial asset is determined in based on the average salary of the last 120 updated months. And this update is applied on the basis of a coefficient calculated based on the wage evolution of registered workers (RIPTE) with a lag compared to inflation.
For example, the coefficient for March/May 2024 takes into account the RIPTE for October/December 2023. This coefficient has evolved below inflation. As a result, the pensioner’s initial assets start with a more than significant loss.
For example, between March 2023 and March 2024 this coefficient increased by 149% in the face of inflation which, in March, was estimated to exceed 300%.
According to official data, between March 2018 and December 2022, Inflation was 2.553% and the salary update coefficient increased by 1.826%.
This update index is made up of the junction of multiple indexes. In recent years it was based on the quarterly RIPTE (taxable remuneration of stable workers), but calculated according to the two previous quarters (Macri management), which accentuated the worsening in the face of accelerating inflation. So a quarter delay was applied.
Subsequently, this initial asset is adjusted every three months by a mobility index which takes into account the change in wages and the collection of taxes intended for Social Security and which also varies below inflation.
Thus, in that same period (September 2017/March 2024), the increases in pensions and pensions, under the management of Mauricio Macri, then Alberto Fernández and now with Javier Milei, had an increase lower than inflation and salaries.
Thus, mobility is added to a reduced initial “lifetime” asset, which further reduces the “lifetime” pension amount even further.
These percentages increase the pension They have not been changed by the bonuses granted under Alberto Fernández and now with the current management Since they were not included in the assets, they were not taken into consideration for the payment of the bonus and were only applied to those with lower assets. This resulted in the calculation of the following increases for all pensioners and reduced-wage pensioners, without considering bonuses.
In short, depending on the moment in which the person retired and retires, the loss is double: when the initial salary is determined and then with the lower-than-inflation increases that he received between September 2017 and December 2019, then with the decrees (2020) and then until March 2024 according to the mobility indices.
Source: Clarin
