Retirements in Córdoba: How is it financed and in what context is it carried out?

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 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 deficit of the provincial fund 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 figure of which is still unknown. This raises doubts about the effectiveness of the measure in the long term.

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 accentuated by the special regimes of 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 put the sustainability of the provincial fund at risk in the long term.

The increase in the minimum benefit doesn't address the underlying causes of the deficit or the injustice 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.

Over the years, Córdoba's pension system has remained unbalanced, and current policies only seem to focus on stopgap measures. Llaryora's government has not implemented a deep reform that guarantees the long-term viability of the system, leaving retirees and citizens with low expectations for improvement.

The electoral use of national funds for the increases

Criticism points out that  the increases announced by the governor are not only insufficient, but also respond to electoral interests. The measure seems more like an attempt to gain political support before the upcoming elections than a real solution to the problems of the pension system. Meanwhile, national funds to cover the deficit are allocated to populist measures, instead of to an effective structural reform.

This approach has caused distrust among Cordobans, who see that national funds are used for political purposes, without addressing the underlying problems. The lack of transparency and the uncertainty about the increases generate distrust in the stability of the provincial pension system. Structural reforms continue to be an urgent need that the provincial government has not been able to address seriously.

Llaryora's announcement, although well received by some allied sectors, doesn't solve the structural problems of Córdoba's pension system. The dependence on national funds and the electoral use threaten financial stability, while society awaits sustainable solutions.