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Sheinbaum Will Seek Constitutional Fix To Clarify Pension Cap

Setting the ceiling at the president's salary preserves current payments, creates legal certainty, guides agencies on how to apply the cap.

Overview

  • The Presidency announced Tuesday that President Claudia Sheinbaum will send a constitutional initiative to Congress to amend Article 127 so the cap on pensions for former trusted public servants is explicitly tied to the president’s remuneration.
  • The Presidency's Legal Advisory issued a temporary opinion applying the full presidential pay as the cap to protect beneficiaries, a step the government says reduced pension outlays by about 5 billion pesos.
  • Until a constitutional change is approved and published the text that refers to a 50 percent cap remains in force, so the amendment must win two‑thirds of Congress and a majority of state legislatures before it takes effect.
  • The rule applies to pensions for trusted staff of decentralized bodies and state firms like Pemex and CFE, excludes military and non‑contributory pensions, and follows reports that some former officials once received monthly payments up to 1.5 million pesos.
  • Key technical questions the initiative must settle include whether the cap is measured as monthly net pay, monthly gross pay or annual remuneration, a choice that will determine final pension cuts and could prompt further legal challenges.