Following disputes last month between Congress and President Cristina Fernández de Kirchner over the Pensions bill, problems concerning how much pensioners can hope to receive for their pensions have been resolved. The Chamber of Social Security has made the decision that at the point of retiring no pensioner should receive lower than 70% of their salary.
The decision was made after pensioner José Betancur presented his case, which now implies greater benefits for the retired and sets a new “base rate” to ensure the security of pensioners in Argentina.
The decision represents an improvement between 30% and 40% in standards for the retired as under previous legislation, pensioners could only expect around 50% on average of their salary from social support.
In 1994, when the current laws for pensioners were first introduced, no minimum rate was implied by the bill in order to protect and favour pensioners.
The resolution of the bill follows controversy from when Vice President Julio Cobos broke a tie in Congress aiming at passing pensions at 82%. This met fierce opposition from President Fernández who then vetoed the passed bill, claiming that it could financially damage the country as funds would only last until 2011.
President Fernández vetoed the bill stating “all laws that authorise public spending that isn’t part of the general budget must also specify the source of funding for these initiatives.” In support and solidarity of the president, Daniel Scioli said “you can’t bankrupt the state.”