Businessmen warn of great danger in the Pension Fund for Wellbeing

The topic of the week has been, without a doubt, the reform of the pension system of the Mexican Social Security Institute (IMSS) and Institute of Security and Social Services of State Workers (ISSSTE) for the creation of the Pension Fund for Wellbeingafter it was approved in the Chamber of Deputies and will surely be endorsed in the Senate of the Republic.

Under this context, private sector business organizations, such as the Employers' Confederation of the Mexican Republic (Coparmex), have warned about the risks of not exhaustively analyzing the implications of this reform to the IMSS and ISSSTE pension system would have for workers in the Mexican formal sector.

Thus, through a statement released on its official social media accounts, Coparmex warned that the reform of the pension system for the Welfare Pension Fund leaves different important issues unfinished.

The above, the private sector organization warned, In turn, it puts at risk transparency regarding the use and destination of the trust's resources. which, according to the opinion approved by the federal deputies, will be the responsibility of the Ministry of Finance and Public Credit (SHCP) and the Bank of Mexico (Banxico).

Likewise, the private initiative emphasized the fact that with the creation of the Pension Fund for Wellbeing the Mexican federal government I would be centralizing money that belongs to the workerstaking into account that this new trust would be controlled by the State.

“In addition, the initiative leaves various unfinished elements that put at risk the transparency regarding the use and destination of the Fund's resources. From COPARMEX, we demand that the formation of a tripartite Technical Committee be considered to safeguard the use and destination of the resources, and to ensure that these fulfill their objective and are used for the benefit of the workers,” reads the statement released.

In addition to the above, Coparmex warned that the reform involves the transfer of funds that are in the Infonavit Housing Subaccountswhen the person has turned 70 years old and has not claimed the money, highlighting that this goes against a resolution issued by the Supreme Court of Justice of the Nation (SCJN) which emphasizes that these savings cannot be mixed with the payments of pensions.

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