Although times begin to ‘tighten’ for the approval of the reform of the pension system in the Chamber of Deputies, the Afores remain firm in avoiding maximum prices in commissions, and are open to an international body doing an analysis and determine what is the theoretical commission that should be charged in Mexico for managing workers’ savings for their retirement.
This was determined by Bernardo González, president of the Mexican Association of Retirement Savings Administrators (Amafore), who considered that Yes, it is possible that the proposal to reform the pension system will be approved before the end of the ordinary period (on December 15), but not before letting the Legislature see that it would be a serious mistake to approve it with the change to Article 37 of the Retirement Savings System Law, in terms of cap commissions at an arithmetic average close to 0.54 per hundred.
« The proposal is a violation of the Federal Law on Economic Competition and, consequently, of international treaties that protect foreign investment, especially some Afores that have foreign capital and that put at risk, not only the legal part, which is very relevant, if not already the dynamics of competition and operation of the sector and that does not help workers at all.
« Also, that the reference is only three countries, that nothing resembles Mexico and even that it be an international organization that makes an analysis and determines what is the theoretical commission that should be charged in Mexico It would be more viable, but not to say that the United States, Chile and Colombia are equal to Mexico, ”said González.
During the press conference for the presentation of the ‘Amafore Digital Encounter’, which will take place on December 2, the president of the Amafore anticipates that the Afores industry would shrink because bankruptcies or mergers of administrators are estimated if the initiative as sent by the Executive to Congress.
“There is a commitment from the Afores to continue lowering commissions (currently 0.92 percent) to international levels in 2024; in fact right now they are beginning to propose the decreases for 2021 and it will be a significant drop (on average at 0.80 percent) ”, said the representative of the ten Afores that operate in the country.
No to simulation
Bernardo González condemned the simulation of workers’ salaries, since they are robbing the worker and condemning him to lower pension amounts, so the Amafore welcomes changes to eradicate these illegal practices.
« The The intention of the outsourcing initiative is to correct the bad practices that began to be done by employers, so for retirement savings it is good news, since it is good that the real data of the workers are reported and that they have access to social benefits ”, said the president of Amafore.
For his part, González affirmed that despite the fact that the forecast that around 1.5 million former workers could request a partial retirement due to unemployment this year, the amount of 16 thousand 471.5 million pesos, which they have withdrawn from their individual account, was fulfilled. in 2020, it represents only 0.4 percent of total assets under management, so it is not a red alert.
“The 11 percent that former workers are allowed to withdraw from their Afore account for unemployment is a reasonable percentage that they can recover over time; We are not in the extreme case of Chile or Peru, where they are decapitalizing their pension systems and the government will not have money to pay pensions in the future. Here we are acting in a responsible manner ”, declared the president of the Amafore.
The ‘Amafore Digital Meeting’ will be attended by Esther Duflo, 2019 Nobel Prize winner in Economics, with the theme “Aging without impoverishing. Save for our retirement ”. There will also be Mexican authorities and experts in investment in financial markets and ESG.
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