Image credits: Presidencia de la República
News Article

Pension System Reform / SCT Disagrees on Ports

By Ricardo Guzman | Wed, 07/22/2020 - 12:07

Pension system reform announced. Minister of Finance (SHCP) Arturo Herrera announced a reform to the pension system (SAR) that contemplates an increase in the employer contribution, so workers have a higher guaranteed retirement pension without having to save extra from their salaries. The total contribution will rise from 6.5 to 15 percent and the employer contribution from 5.15 to 13.87 percent. “Over an eight-year period, employers will increase by 2.7 times what they contribute to their workers’ retirement,” Herrera said and noted that workers with lower salaries would receive a greater benefit. Commissions charged by management funds (Afores) will be trimmed to near 0.7 percent.

CCE applauds reform. Pension system reform will benefit more than 20 million Mexicans, Business Council (CCE) head Carlos Salazar said. “We hope this proposal passes in the Congress because this is a benefit for Mexico,” Salazar noted and highlighted the historic announcement of the reform that was endorsed by the government, private sector and union leaders. President López Obrador highlighted that when the initial reform was carried out in 1997 it fell short, but that has now been resolved to guarantee a better retirement for all workers.

SCT disagrees with customs decision. After announcing last Monday that the armed forces would take over customs and ports, President López Obrador said the Ministry of Communications and Transportation (SCT) has rejected the idea. “I think the Navy can take care of ports and customs because there is contraband, corruption and drug smuggling. We need this authority to control the ports,” he said. The president said discrepancies around the proposal are going to be resolved “one way or another.”

Presidential plane returns to Mexico. After failing to sell the luxury presidential aircraft in the US, a goal from the beginning of his administration, President López Obrador said the plane will return to Mexico today. “It’s coming back. I think it leaves at noon,” he said. López Obrador said he plans to hold the security meeting and the daily briefing in the luxury aircraft and that the sales process is ongoing. “There is no problem delivering it here or in the United States,” he said.

Mask not necessary for economy. President López Obrador said that if the country’s economic reactivation requires the use of a face mask, he would use one. “I think it is very disproportionate. If masks were a necessity for the reactivation of the economy, I would put it on immediately,” he said when asked about Minister of Finance (SHCP) Arturo Herrera’s statement that using a mask would allow the economy to relaunch. “I follow the recommendations of scientists and doctors. I don't think he (Herrera) said that,” López Obrador stated. Herrera noted that his remarks were part of an analogy he used during a CANACINTRA forum.



Click HERE for full transcript in Spanish


Ricardo Guzman Ricardo Guzman Editor