Argentina · 13 April, 2020

Draft law to reform the pension system in Argentina and move it towards a more equitable and sustainable model

This project arises from joint work between the Argentine Social Security Ministry and EUROsociAL+, through the Social Policies area at IILA, to prepare a diagnosis and proposals for updating the different social security systems that should form a multi-pillar system in the country.

The Argentine Ministry of Labour and Social Security has submitted a bill to Congress to reform the pension systems of the Judiciary and the Argentine Diplomatic Corps (known as “privileged retirements”).

The presented draft aims to reduce the existing inequities in the pension system, cutting the payroll of judicial officials who will be able to access the special judicial regime, reducing retirement mobility and nullifying access to the diplomatic special regime for new entrants, while also aiming to gradually increase the minimum age to sixty-five.

This bill arises from joint work between the Argentine Social Security Ministry and the European Union Programme EUROsociAL+ to prepare a diagnosis and proposals for updating the different pension systems that should form a multi-pillar system in Argentina. In these documents, the expert Andras Uthoff stated that: “The administration of a highly fragmented system in horizontal and vertical terms, with various rules, makes it difficult to identify the sources of imbalances between the permanent income and expenditure requirements of the system.” That is why a suggestion has been made “to evaluate the various special pension schemes in force and compare them with the general pension scheme to determine the size of the differences and identify the necessary modifications in order to achieve higher levels of equity and sustainability within the entire scheme”.

The EUROsociAL+ technical assistance process materialised in two stages. The first, between May and December 2018, in support of the agenda and formulation of the pension reform in Argentina by identifying, reviewing, analysing, and evaluating experiences and relevant public policy lessons on pension reforms in the European Union and Latin America. The second stage ran from October to December 2019 and involved the preparation of a Base Report (diagnosis of the situation of the country’s pension system and details of the reform proposals) and an Executive Technical Document (proposal of prioritised reforms) for the review of the Argentine pension system.

 

Country: Argentina
SDG: Good health & well-being, Reduced inequalities
Policy area: Democratic governance policies