Mexico's President Proposes New Pension Fund for Lower Incomes Ahead of Elections
Mexican President Andres Manuel Lopez Obrador aims to present a new pension fund on May 1, a month before presidential elections, to boost lower pensions.
The fund is part of a pension reform proposed in February and was approved by the lower house on Monday.
It needs Senate approval.
The president hopes to guarantee and increase pensions, while opposition warns it could risk workers' savings managed by private companies.
The government plans to initially invest 40 billion pesos from unclaimed savings of workers aged 70 or older.
The Mexican government aims to ensure that workers earning up to 17,000 pesos ($1,001.77) per month receive 100% of their salary upon retirement through a new bill.
Critics argue that the bill's quick approval by the lower house is politically motivated and potentially unconstitutional.
The Supreme Court may declare it unconstitutional, and the retirement fund entities in Mexico have stated that individuals will continue to have control over their accounts.
As of the end of March, the private retirement system managed over 6.1 trillion pesos ($359.46 billion).