Moratorium on pensions: the government has enacted the measure which allows debts to be canceled on retirement

The National Government promulgated on Tuesday the new law of moratorium on pensions which was sanctioned by Congress weeks ago and which the executive branch estimates will benefit about 800,000 people.

The promulgation was made by the Decree 132/2023which was published this Tuesday in the Official Bulletin and which bore the signatures of President Alberto Fernández, Chief of Staff Agustín Rossi and Labor Minister Kelly Olmos.

The pension debt payment plan is aimed at citizens who, despite having reached retirement age, have not managed to pay the 30 years of contributions dictated by the law 24.241; and women between 50 and 59, and men between 55 and 64, who still do not have the age limit, but already know in advance that they will not reach 30 years of pension contributions.

Under legislation assented to on the last day of February, those who agree to the moratorium will not be able to pay installments due over the past decade, but will have to go back to earlier periods. The first group of beneficiaries (those who have already reached retirement age) will be able to regularize the debts of contributions prior to December 2008. The payments will be deducted directly from the pension which they will receive monthly.

While those who are within 10 years of retirement age will be able to regularize pending payments before March 31, 2012.

According to ANSES estimates, with the Retirement Debt Reimbursement Plan, some 800,000 people who will reach the required age this year will be able to have their retirement debt canceled for withdraw. And another 900,000 will be able to identify missing contribution periods and cancel them early before reaching age.

Of the total of 7.2 million current retirees, 50% entered the system through moratorium laws, according to agency data. In Argentina, people who reach retirement age with 30 years of contributions are in the minority: only one woman out of 10 and three men out of 10. Moreover, on average, Argentine workers have between 14 and 17 years of contributions.

The interim debt repayment plan for those who have already reached retirement age will pay the dues due in monthly instalments. This contribution is calculated by a provisional debt payment unit (UPDP). The amount for each month owing is equal to 29% of the minimum taxable earnings, which equates to approximately $5,730 in March of this year.

The total debt can be paid in installments, with a minimum of two and a maximum of 120, depending on how many years you wish to pay. The value of the fee is then adjusted quarterly according to mobility.

For example, if a person owes 10 years of contributions, the calculation is the unit of payment (UPDP) multiplied by 12 then multiplied by 10. The result is the total debt, then the person chooses in how many installments they prefer to pay it (with a maximum of 120 installments). Each installment is deducted from your credit on a monthly basis.

Another case is that of a person who has 25 years of contributions and must “buy” five years. If you choose to pay in 30 installments, which equals 30 months in which the credit payment is reduced, you will receive a credit discount of approximately $11,000. If you choose in 60 installments, it will be just over $5,000. After these 30 months, he begins to collect the total credit.

After publication in the Official Journal, ANSES must now declare the procedures in order to be able to access the payment plan.

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