On April 30, 2024, the Official Gazette of the Federation published a Decree by which different provisions of various Laws are added and repealed to create the Welfare Pension Fund (the Decree).

The Welfare Pension Fund will have a Technical Committee that shall issue the operating rules on the receipt, administration, investment, delivery and returns of resources to the Mexican Social Security Institute (IMSS).

The IMSS will coordinate with the Institute of the National Workers’ Housing Fund and the National Commission of the Retirement Savings System in order to issue, within the year prior to the worker turning seventy years old, the notice by which the worker or his/her IMSS beneficiaries make the resources enforceable, on the understanding that these resources are imprescriptible.

The Bank of Mexico will act as trustee in the public trust not considered a parastatal entity called the Welfare Pension Fund referred to in the Federal Budget and Fiscal Responsibility Law.

The Federal Executive Branch, within 60 days after the Decree comes into force, shall issue another Decree in which it shall provide, among other matters, the following: (i) The Welfare Pension Fund will have among its purposes to receive, manage, invest and deliver the resources that are contributed to it in accordance with the applicable provisions, and may establish additional contributions to its assets; (ii) The resources of the Welfare Pension Fund assets shall remain assigned to the trust and be invested in it until they are used for its purposes, therefore, they may not be used to contribute to the budgetary balance; (iii) The Welfare Pension Fund will provide social security institutes with the necessary resources to ensure that workers who reach sixty-five years of age and whose pension is equal to or less than sixteen thousand seven hundred and seventy-seven pesos and sixty-eight cents, which is equivalent to the average monthly salary registered in 2023 in the Mexican Social Security Institute updated by the estimated inflation for the year 2024, receive a complement to the obligations of the Federal Government in relation to the pension obtained in accordance with the applicable provisions so that it is equal to their last salary up to the amount described; and (vi) The Welfare Pension Fund will have a Technical Committee that shall issue the operating rules on the receipt, administration, investment, delivery and returns of resources to social security institutes.

The above constitutes important and very significant changes for the future of workers, we should wait for their implementation to be able to evaluate the results of the same.

At Trejo Gutiérrez Abogados, we have a group of experts in labor matters with more than 20 years in the market. In case you require additional information or a legal analysis, please do not hesitate to contact us. We will be glad to provide the personalized legal advice that you require.