Mexico Expands Pension, Housing Support

Mexico is implementing new measures to support public sector employees, particularly teachers, through pension enhancements and housing debt relief. The initiatives, announced by Martí Batres, Director General, ISSSTE, include a presidential decree directing FOVISSSTE to assist 400,000 borrowers facing financial difficulties.

The decree, signed by President Claudia Sheinbaum, mandates FOVISSSTE to reduce interest rates, freeze outstanding balances, offer debt reductions, and, in some cases, fully forgive loans. Of the 400,000 affected borrowers, 240,000 are teachers.

Jabnely Maldonado, Executive Director, FOVISSSTE, confirms that the benefits will be applied retroactively from Jan. 1, 2025. Eligible borrowers do not need to visit FOVISSSTE offices but must update their information via a designated phone line to expedite processing.

Additional government initiatives include maintaining the retirement age at 58 for men and 56 for women under ISSSTE's transitional pension system. Other measures provide widow pensions for active workers and remove the requirement for pensioners to verify their eligibility every two years.

The administration is also reinforcing the Fondo de Pensiones para el Bienestar, established in 2024, to supplement retirement income. The fund aims to ensure that teachers and state employees retiring under individual savings schemes receive pensions comparable to their final salaries. 

President Sheinbaum emphasizes that the pension fund mitigates the effects of the 2007 ISSSTE reform, which had led to lower retirement benefits for many workers. She clarified that since 2019, the fund has been available to ISSSTE-affiliated workers, contrary to reports suggesting it applied only to IMSS employees.