IMSS Modality 40 is an option that allows workers to continue contributing to the Mexican Social Security Institute (IMSS) voluntarily, with the main objective of improve your pension at the time of retirement.
This scheme, whose legal name is Voluntary Continuation to the Mandatory Regimeis ideal for those people who have stopped working formally or have been laid off from their job, but wish to continue increasing the amount of their future pension.
With this modality, it is possible to continue adding contribution weeks and increasing the base contribution salarykey factors for calculating the pension. It is important to note that the most important benefits apply to the workers who contribute under Social Security Law 73.
Advantages of Modality 40:
One of the great advantages of Modality 40 is that it allows the insured to improve your average contribution salary in the last five years of work, which has a direct impact on the amount of the pension they will receive.
This is especially relevant for those who had lower wages for much of their working life, since register with a higher salary In Modality 40, they will be able to significantly increase their pension.
In addition, it is possible choose the amount on which you wish to quoteas long as it does not exceed the maximum limit established by law, which gives flexibility to the insured to adjust to their financial possibilities.
It is important to note that in order to register for IMSS Modality 40, it is necessary to have previously contributed to the mandatory Social Security regime. This means that People who have never been affiliated with the IMSS cannot opt for this scheme.
Besides, The payment for Voluntary Continuation to the Mandatory Regime is not cheap If you want to increase your pension. In this context, if you want to start paying into Modality 40 with just 500 weeks, you should know that it will not be convenient for anything other than adding weeks, but not to increase your salary. You should also consider the scheduled increases in the cost of Modality 40.
This is because the real benefits where the growth of your investment can become more exponential and really increase your pension is from 650 weeks onwards. Of course, there are cases that must be analyzed individually, but from that amount, slightly more significant improvements can be seen for the worker.
Registration for Modality 40:
The registration process is simple and can be done either in person at the IMSS offices or online through the institute’s official website. At Debate, we recommend that you do it through a counter, because with the online option, unsubscribing is usually a problem and you could lose months processing your pension.
To belong to IMSS Modality 40 under Law 73, it is necessary to meet the following requirements:
1. Belong to Social Security Law 73: To enter Modality 40 under Law 73, it is necessary to have started paying into the IMSS before July 1, 1997. Law 73, or “old law”, offers different benefits compared to the Law of 97, especially in the calculation of the pension.
2. Not paying contributions to the IMSS: The worker must have been terminated by his or her employer to register for Modality 40. From that moment on, the worker is the one who makes voluntary contributions instead of the employer.
3. Request registration in Modality 40 before completing 5 years since the discharge: You must not spend more than five years without paying contributions to the IMSS. If this period is exceeded, the validity of your rights will be lost and it will no longer be possible to register in Modality 40. For example, if you stop paying contributions in 2018, you would have until 2023 to request your registration.
4. Have at least 52 weeks of contributions in the last 5 years: A minimum of 52 weeks of contributions in the last five years before leaving work is required to be able to register in Modality 40 and continue with voluntary contributions.
Once registered, the worker must complete monthly payments corresponding to the percentage of the chosen base salary for contributions, which will cover both disability and life insurance as well as retirement, unemployment at advanced age and old age insurance.
Another important aspect to consider is the time during which one can remain in Modality 40There is no specific time limit, which means that the insured can remain enrolled in this modality until he or she meets the requirements to retire or until he or she decides to stop making contributions.
However, it is advisable to make the most of this scheme in the years before retirementsince the last five years (the 250 weeks of contributions before your retirement) are the most decisive in calculating the average salary that will be used to determine your pension.
IMSS Modality 40 has become an attractive option for many workers, especially for those who wish to secure a highest pension at the time of his retirement.
Although it involves making voluntary monthly contributions, the long-term benefit in terms of pension amounts can be considerable. For those who are close to reaching retirement age and contributing under Social Security Law 73this scheme can make the difference between a modest pension and one that allows you to live more comfortably.
For this reason, it is essential to carefully evaluate your financial possibilities and retirement goals before making the decision to enroll in Modality 40. If you are registered under Social Security Law 97, in your case it only serves to add weeks and the recommended registration would be with the minimum fee.
#entitled #modality
