Córdoba Governor Martín Llaryora announced an 84.21% increase in the minimum retirement benefit, raising it to $700,000. This increase will impact around 2,600 retirees in the province, along with a bimonthly bonus of $100,000 for those with incomes up to $1,300,000 gross. The real impact of these measures creates uncertainty, since a large part of the funds comes from the Nation, according to a 2016 agreement.
The agreement, which establishes that the Nation will cover the deficit of the provincial pension funds if they are harmonized with the ANSES system, has been partially fulfilled by Milei's government. However, the use of these funds to increase pensions instead of reducing the provincial fund's deficit has caused controversy. Despite the monthly transfer of $5,000 million, 70% of those funds will be allocated to the increases, contradicting the purpose of the agreement.
Additionally, it has been pointed out that the announced increase is not based on a structural change, but rather on the increase of an already existing supplement. This adjustment will benefit only 5% of provincial retirees, while the rest of the 19,000 beneficiaries will receive a complementary increase, the exact amount of which is still unknown. This raises doubts about the long-term effectiveness of the measure.
The provincial fund continues to accumulate a multimillion-dollar deficit
Despite the improvements in benefits, the deficit of the provincial fund remains a crucial problem. According to official sources, the debt amounts to nearly $20,000 million and is exacerbated by special regimes in some sectors such as EPEC and the Judiciary. The lack of a structural reform in the pension system and the continued dependence on national funds puts the sustainability of the provincial fund at long-term risk.
The increase in the minimum benefit doesn't address the underlying causes of the deficit or the unfairness of the special regimes that affect public workers. Additionally, the provincial government has not shown signs of wanting to reduce public spending, which contributes to the province's financial instability. The health, education, and security systems also continue to receive criticism from citizens, who do not see significant improvements in these sectors.
