On December 16, the Decree that amended, added and repealed various provisions of the Social Security Law and the Retirement Savings Systems Law, which constitute the so-called reform of the retirement system, was published in the DOF. pensions. This decree came into effect on January 1, 2021, however some of its effects will begin later in accordance with the provisions of the transitory articles.

The main changes established by the reform are:

Increase in employer contributions of the Severance branch in advanced age and old age

The employers’ contribution rises from the current 3.15%, to 11.875% in 2030. The increase will begin in 2023 and will be made progressively and based on the worker’s salary, therefore, the employer contributions of this branch They will remain at 3.15% between January 1, 2021 and December 31, 2022, which will avoid an immediate impact on the finances of companies (Second Transitory Article, section I).

Decrease in the number of weeks contributed

The number of weeks of contributions required to have access to the benefits of unemployment insurance in old age and old age is reduced from 1,250 to 1,000. This change will also be made gradually:

  • Starting January 1, 2021, 750 weeks of contributions are required.
  • It will increase annually by 25 weeks of contributions for the next 10 years.
  • Finally, in the year 2031 1,000 weeks of contributions will be required.

Increase in the value of the guaranteed minimum pension

The way of determining the amount of the guaranteed pension is modified so that it is calculated considering the weeks of contributions, the average base salary for contributions during the worker’s working life and their age. This change will also be made progressively: it will begin in 2021, covering those who have 750 weeks of contributions, according to the table provided in the Fourth Transitory Article, and the minimum of weeks of contributions will increase by 25 each year until completing 1,000 weeks quoted.

State contributions

The State contribution modifies its composition to benefit only lower-income workers, without increasing its total amount. This change is also gradual:

  • From January 1, 2021 to December 31, 2022 The Government will continue to cover the social quota in the sectors of unemployment in advanced age and old age, as it is currently doing.
  • From January 1 to December 31, 2023, the Government will cover a monthly amount for each day of quoted salary, as a social contribution to workers who earn 4.0 to 7.09 times the UMA
  • Finally, as of January 1, 2023, the Government, for each salary quoted, will contribute a monthly amount as a social contribution to workers who earn up to 4 times the UMA.

Other changes

  • Until before the reform, the worker had to choose between taking out life annuity insurance or keeping the resources in a Retirement Fund Manager and making programmed withdrawals charged to the balance, with the reform, it is established that the insured can choose both options.
  • In the event of the death of the worker or pensioner, the designated beneficiaries will not have to go to a court to exercise their rights.
  • The commissions charged by the Afores will be subject to a maximum, which will result fromThe arithmetic average of the commission charges in the defined contribution systems of the United States, Colombia, and Chile, in accordance with the policies and criteria issued by the Governing Board of CONSAR.