New moratorium on pensions: the keys to knowing who will be able to cancel their debts in retirement and at what price

According to an estimate by ANSES, 437,000 women and 298,000 men across the country have already reached retirement age and have not yet reached 30 years of contributions. Everyone can access the moratorium on pensions which was approved in deputies.

The regulations have not yet been published, but the text voted on Congress provides details on how the moratorium will be implemented.

The moratorium targets two broad groups of people. The first is made up of citizens who, although they have reached retirement age, have not managed to pay the 30 years of contributions dictated by the law 24.241; the other is made up of those who have not yet reached the age limit, but already know in advance that they will not reach 30 years of pension contributions.

In both cases, it is therefore Argentines who need to catch up on their contributions to meet the conditions for access to retirement.

In more detail, the first group is composed of women aged 60 and over there men aged 65 or overwith less than 30 years of contribution.

In the second group are the women between 50 and 59 years old and the men between 55 and 64 years old who already know that they will reach retirement age without the 30 years of compulsory contributions.

Those who accept the moratorium will not be able to pay installments due over the past decade, but will have to go back to earlier periods.

According to the new law, the first group of beneficiaries (those who have already reached retirement age) will be able to regularize the debts of contributions before December 2008. The payments will be deducted directly from the pension they will receive monthly.

The second group, those within ten years of retirement age, will be able to regularize pending payments before March 31, 2012.

The amount of total debt will vary depending on each person’s particular situation. However, there is a formula that allows you to know in advance what the minimum value of the quotas will be.

Those who have already reached retirement age (women aged 60 and men aged 65 or over), will have to adapt to the “Pension Debt Payment Unit” (UPDP)a value that depends directly on the “minimum taxable remuneration”who reached today $19,758.51.

According to the regulations, the installments that will be deducted from each salary payment will be equivalent to 29% of said minimum non-taxable remuneration. Today, the amount to be discounted would then be $5,729.96 (29% of $19,758.51).

How long will you have to pay? It will depend on each retiree. A person who owes, for example, five years of contributions, must pay the UPDP during these five years, but if he owes ten, he will have to face the pension discount for a whole decade.

At this point, it must be taken into account that the limit of contributions to be paid by each person is 120. Therefore, those who owe more than ten years of contributions must pay more than one UPDP per month to regularize the total debt .

Likewise, those who owe, for example, five years, will have the possibility of canceling the debt in fewer installments, which will logically lead to the monthly discount being greater than a monthly UPDP. The advantage in this case would be that the moment when the pension could be received at 100% (with the debt cancelled) would be reached earlier; the disadvantage would be that on the road the discounts would be greater.

In the case of those who have not yet reached the minimum retirement agethe system will be exactly the same, but only those who prove income that demonstrate the ability to pay the debt.

Yes, you have to think about it It is not mandatory mandatory achievement a full payment plan. This means that, if today the beneficiary is able to pay the installments, but loses his job within the year, he can stop paying without any penalty and without losing what he paid before.

If at another time his economic situation improves, the pension applicant may resume payment of the installments without major inconvenience.

There is no set date yet for the start of the debt relief benefit, but it will surely take several days. First of all, the law must be regulated by the Executive power -when this happens, it will be released in the Official Bulletin– then the Considered You must inform the procedures to be able to access the payment plan.

Once operational, the law will be in effect for 24 months. Therefore, those who meet the entry requirements during this period will be able to join. An example is a woman who in 2024 will be 50 years old. Today, at 49, he cannot access it, but in a few months he will have the chance to sign the moratorium.

In addition, the law will have the possibility of being extendable, so it is not excluded that more people may join in the future.

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