The Argentine Congress approved, this Tuesday (28), a law that will allow exceptional retirement to about 800,000 people who do not meet the contribution requirements. The law creates a payment plan to allow citizens of retirement age, but without the required 30 years of contribution, to have the remaining installments deducted from their own retirement.
The initiative, promoted by the governing coalition and which had already been approved last year by the Senate, received the green light in the Chamber of Deputies, with 134 votes in favor and 107 against. The idea is that the remaining contribution to retirement be deducted from the benefit in up to 120 installments.
The minimum retirement age in Argentina is 65 for men and 60 for women, provided they have contributed to the system for at least 30 years. Until now, those who did not have access to retirement because they did not meet the requirements could apply for the so-called “universal pension for the elderly”, which is equivalent to 80% of a minimum pension.
In Argentina, there are about seven million retirees and pensioners. The current social security system is state-owned and is fed by mandatory social security contributions based on a percentage of workers’ income, both self-employed and salaried.
Faced with successive economic crises in Argentina – with high unemployment and a high level of informality – exceptional measures called “pension moratoriums” were applied, which allow citizens to retire with fewer years of contribution, but receiving a smaller pension.
The last “social security moratorium” was in effect from 2014 until July of last year, when Argentine President Alberto Fernández announced its extension, taking the decision to extend the period until Congress approved a new law.
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