Deadline imposed by ISSSTE to state workers for choosing pension regime has concluded

November 14 was the deadline given by ISSSTE to workers covered by 1983 Law to choose the pension system most convenient for them. There were two options: a) a transition regime similar to the old one but with changes in the wage eligible for pension calculations and the minimum retirement, among others; or b) the delivery of a pension bonus through an individual account aimed to recognize the rights entitled in the old regime.
However, as recently informed by the director of the institute, up to date there is not an exact figure of how many workers chose to change to the individual account regime, but in a visit to the legislative he gave the figure of five millions individual accounts managed by PENSIONISSSTE (Institute’s own pension fund manager that will be the monopoly of this sector during 3 years). This figure can be explained considering that more than two million public service workers not covered by the old law as they were hired as independent workers, became eligible for the mandatory regime under the new law implemented in 2007. The remaining accounts can be the result that under the old law, government agencies contributed 2% of worker’s wage to an account managed by a bank institution. With the new law this amount is managed now by PENSIONISSSTE, except in cases where state workers also contribute or have contributed under the 1997 Social Security Law which rules social security for general workers.