Pension reform in Mexico, Rescata tu AFORE from the hands of experts
From this month of June, the law for the creation of the Welfare Pension Fund comes into effect in Mexico. This new legislation represents a significant change in the pension system within the country, especially for individuals with low incomes and older adults with inactive pension accounts. The Rescata tu AFORE team has focused on explaining the main changes in the recent pension reform and providing the necessary support and advice to effectively recover AFORE within the expatriate community in Mexico.
Key modifications in the 2024 pension reform
One of the key aspects of the pension reform is that individuals with salaries below 16,777.78 Mexican pesos per month may receive a pension equivalent to 100% of their last salary. Additionally, the legislation also establishes a mechanism to transfer the money of individuals over 70 years old who have contributed to the Mexican Social Security Institute (IMSS) and have inactive accounts to the Welfare Pension Fund.
Furthermore, accounts of individuals over 75 years old who contributed to the Institute of Security and Social Services for State Workers (ISSSTE) will also enter the same modality. The law also includes the obligation of AFORES to notify workers and beneficiaries of the transfer of their money at least one year in advance, as well as the moment when the money has been transferred to the fund.
Allies for AFORE recovery
The legislation also contemplates that the Welfare Pension Fund will be funded with more than 40 billion pesos derived from unclaimed and inactive accounts. However, account holders can claim their pension at any time, relying on their established right in article 302 of the IMSS Law and article 37 of the Infonavit Law.
However, the procedure to recover AFORE can be complex and confusing for many individuals, so having the guidance and personalized advice of national and foreign economists and lawyers from Rescata tu AFORE is an excellent alternative to withdraw financial resources in the best legal scenario possible.
