The Government seeks to cut 0.4% of GDP from retirement spending.

Las retirees and retirees They are again target of adjustment. The Minister of Economy, Luis Caputoassured that they will seek to suspend the pension mobility formula that guides the quarterly increases in retirements, pensions and social benefits of the Anses in order to “improve” salaries, but in the adjustment package that the Milei Government presented upon taking office includes a cut of 0.4% of GDP in retirements and pensions. This represents about U$S 2,000 million and would imply a loss of more than 6% in real terms.

Under the government of Front of All (Alberto, Cristina and Massa) retirees not only They did not recover the 20 points of purchasing power lost with Macribut they kept losing.

Without bonus, the minimum retirement will have lost about 40 points purchasing power compared to November 2015 (before Macri takes office), and 20 points compared to November 2019 (before Alberto Fernández takes office). A brutal and silent adjustment hand in hand with inflation and the “robbery” that Macri and then the Frente de Todos did to the retirees in turn, modifying the formula for updating pensions (the pension mobility formula).

The formula promoted by the Frente de Todos government did not have a guarantee or minimum floor to avoid losing to inflation, as the Left Front deputy, Nicolás del Caño.

Those who collect the minimum retirement they perceive $ 160.713but of that amount only $105,713 correspond to having properly speaking, the rest of $ 55.000 it’s a “booster“which is not included in the credit and which will not be received in January, unless the Milei government decide to extend it. This in itself means a nominal 35% cut in assets, added to the expected inflation of 60% accumulated between December and January. The “compensation” that the Frente de Todos government tried to make with that bonus or reinforcement for the minimum before the “liquefaction” of assets against inflation He left Milei with the option of eliminating the adjustment bonus, without needing to touch pension mobility.

As a counterpart, the Retirees who did not receive a bonus are those on whom the adjustment fell the most during the government of the Frente de Todos. For example, for those who charge two minimum retirementsthe loss of purchasing power reaches 27% in the last 4 years (since December 2019) already 12% in the last year aloneadded to all the losses month after month without any type of compensation.

According to Congressional Budget Officein the first 11 months of the year the spending on retirement and pensions had a cut of $488,527 million in real terms, which implies an adjustment of about 0.3% of GDP (the same level that is estimated to have also been cut in 2022) while Spending on family allowances was adjusted by $601,253 million. These two items were affected by increases in mobility below inflation.

In addition to the elimination of bonuses, the other way that La Libertad Avanza has to cut is the suspension of pension mobility, which is established by Law, and the realization of increases by decree. This will mean the continuity and depth of the salary liquidation through inflationary acceleration, since the increases will depend on the will and discretion of the Government based on the magnitude of the adjustment, and not on a specific criterion (inflation or wages), which could aggravate the enormous loss of purchasing power that Retired men and women are already accumulating.

Far from “protecting” retirees, Caputo and Milei want to adjust them They are based on this loss during the previous government and with Macrismo himself to justify the suspension of the update formula and have an adjustment tool that will allow them to take a larger slice of the Expense if necessary. As? Granting increases in salaries behind inflation, at the same time that they add fuel to the fire of prices due to the measures themselves adopted, such as the devaluation and the great rates.

Milei lied and said that he was going to adjust to “the caste”, but he is adjusting to the retirees and workers, while leaving intact the millionaire profits of the banks, the debt speculators and the concentrated capital of our country. This Wednesday December 20 social organizations, combative unionism and the left, together with FITU deputies such as Myriam Bregman, Del Caño, Castillo, Vilca and Del Plá, call for the first mobilization to reject the brutal Milei-Caputo adjustment plan against the workers and the people and against the criminalization of the Bullrich and Milei protest. The union centers must call for a national strike and a plan of struggle to demand an emergency increase in pensions, salaries and social benefits and to defeat the war plan against working people.


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