13.12.201715:07:00UTC+00ARGENTINA: House Of Representatives May Vote On Pension Reform Next Week

The Argentinean government managed to obtain favorable reports from two House of Representatives committees about the pension reform bill in spite of protests from activists and should move the legislation to a floor vote next week.

The ruling party and its allies had enough votes to support favorable reports to the pension reform bill both in the Social Security and the Budget committees. However, the Justicialist party, which is the third biggest in the House of Representatives, decided not to pronounce itself on the matter.

The pension reform received a half sanction in the Senate on November 29, in a 43-23 vote.

The pension reform changes the formula to update retirement payments. The new rule states that pensions adjustment would track both the inflation rate and the changes of a wage index calculated by the Ministry of Labor. Inflation would have a 70% weight, while the remaining 30% would come from the Ministry's index.

The bill also establishes an optional retirement at age 70 and states that those who retire at minimum wage after more than 30 years contributing to the state pension fund should receive 82% of the monthly minimum wage - or 7,265 pesos (US$ 416.82) currently.