Government announces pension reform regulations

Access to the new pension buyback scheme will be defined by the ANSES

Regulations for Argentina’s new pension buyback scheme have been announced in the Official Bulletin, establishing income and tax requirements for those who wish to buy back their retirements. They will also not be able to buy dollars (MEP or blue chip swap dollars) for 12 months following their application.

The decree (Decree 173/2023), also established that defining the requirements to access the new scheme falls under the purview of the National Social Security Administration (ANSES).

“We are waiting for and want to recognize these men and women who made such an effort for so many years,” said ANSES head Fernanda Raverta in a press release. “That’s why our over 420 offices will be open to receive them and start the journey towards a new stage in their lives.”

The new pension law — often referred to as a “pension moratorium” — implements a new scheme by which people of retirement age who do not have the required 30 years of contributions can purchase or “buy back” years to retire. It also benefits those who are within ten years of retirement age, enabling them to pay contributions in advance — that includes women between the ages of 50 and 59 and men between the ages of 55 and 64. Approximately 800,000 people are set to benefit from the scheme.

For applicants that are old enough to retire, ANSES is set to use data from the AFIP tax authority to take their socioeconomic status into account, including gross annual income and declared assets, as well as credit and debit card expenditure. The decree also outlines, as per a decision by the governing board of the Central Bank yesterday, that applicants will not be able to buy MEP or blue chip swap dollars while under their payment plan.

The decree does not establish regulations for those who have not yet reached retirement age.

The pension buyback scheme, known as the “Plan de Pago de Deuda Previsional” in Spanish, was approved by the House of Deputies in Congress on February 28th with 134 votes in favor and 107 against. It was previously approved by the Senate in June 2022.

According to ANSES, only one in 10 women and three in 10 men reach retirement age with 30 years of contributions. On average, registered workers only have between 14 and 17.

-with information from Télam


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