(Agencia CMA Latam) - Argentinean President Mauricio Macri denied that the pension reform would harm retirees. The bill has passed a Senate vote and is under discussion in the country's House of Representatives.
The pension reform changes the formula to update retirement payments. The new rule states that pensions adjustment would track both the inflation rate and the changes of a wage index calculated by the Ministry of Labor. Inflation would have a 70% weight, while the remaining 30% would come from the Ministry's index.
Some projections indicate that with the new formula, retirees would have a lower increase in their wages in 2018 than they would have under the current system.
"If we are going to have lower taxes, with the current formula, retirees would see their income decrease. We want to ensure that inflation in the next 20 years remains at one digit and that the retirees' income keeps above that inflation," Macri said.
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