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Mexico Enacts Pension Cap for Public Trust Staff Limited to Half the President’s Pay

The overhaul launches a 90-day review of pension plans that critics say will be tested in court.

Overview

  • Following Friday’s Diario Oficial publication, the reform took effect Saturday and limits pensions for trusted or executive public employees to no more than half of the presidential remuneration.
  • The decree targets “personal de confianza” across federal, state, and municipal entities and excludes the Armed Forces, pensions from voluntary individual accounts, union-funded complementary schemes, and the constitutional non‑contributive pension.
  • Public bodies must review and adjust contracts and pension instruments, while Congress and state legislatures have up to 90 days to harmonize laws and set operational rules that will define who is affected.
  • Outlets report different ceilings because they cite conflicting figures for presidential pay, with estimates ranging from about 70,000 to 138,000 pesos monthly for the half‑limit, leaving beneficiaries unsure of the exact cap.
  • Retirees from CFE, Pemex, and the defunct Luz y Fuerza protested and some plan amparos, as reports diverge on whether existing pensions must be reduced or preserved, while President Sheinbaum defends the change as ending million‑peso “golden pensions” to free funds for social programs.