TITLE:
Prospective Study of the Pension System in Mexico: AFORES in the Human Rights, Model of Guaranteeism, and Vital Minimum
AUTHORS:
Enriqueta Mancilla-Rendón, Carmen Lozano
KEYWORDS:
AFORES, Social Security Law 1997, Human Rights, Minimum Pension Guarantee, Vital Minimum Principle
JOURNAL NAME:
Modern Economy,
Vol.9 No.6,
June
7,
2018
ABSTRACT:
The individual account pension plan will soon
recognize those beneficiaries about to receive their pension under this scheme.
The 1997 Social Security Law has incorporated strict requirements to the
pension plan; therefore, the possibility to obtain a retirement through an
individual account is complicated for the employee. The pension will not
necessarily guarantee the quality of life given that the retirement funds have
been accumulated based on contribution rates and voluntary savings but not on
the monthly average of the contribution base wage, which are funds affected by
negative yields. The objective of this study is to analyze the AFORES
classification SB2 and the performance invested in the SIEFORES to quantify the
value of the pension. It applies the hemerographic-legislative technique in the
model of the guaranteeism and the principle of the minimum vital in the
framework of the human rights, and a quantitative study of time series. It is
concluded that individual account system pensions will not guarantee the
quality of life of individual account holders.