Oaxaca, in July of 2011, joined Mexico City and Chiapas in providing a universal pension to all residents. The benefits (500 pesos a month) are lower, however, and the age of eligibility (70 years) higher than they are in the other two states with universal pensions. A more important difference is that Oaxaca achieved universal coverage by complementing federal benefits without duplicating them. The legislation specifically states that the purpose of the scheme is to provide pensions for those who, because they live in communities with more than 30,000 inhabitants, do not qualify for federal 70+ MX$500 (US$39) pensions
In January of 2012, the federal 70+ scheme expanded, to include cities larger than 30,000 inhabitants. This would have meant the end of Oaxaca’s universal (subsidiary) pension, were it not for the fact that the 70+ benefit is now restricted to those without any other federal pension (from social security, civil service, military, or PEMEX). This means that the government of Oaxaca is providing social pensions only to those residents who have access to a federal pension, but no access to the (usually much smaller) 70+ pension. This does achieve the goal of universality, but one might question whether it is a good use of public funds to provide benefits to those with relatively high incomes in a state with a high incidence of poverty. This policy can be justified, although the government has not made the case, other than to claim that universality in itself is a worthy goal, hence the correction of an ‘error- pension-testing – in the federal scheme.
The justification I am thinking of is improved incentives. Most of the non-70+ federal pensions are contributory pensions, earned by participating in social security, and many of the earned pensions are very modest. Now, the majority of workers in Mexico are informal and do not contribute to social security. To deny a 70+ pension to those who earn a social security pension, no matter how small, is to convert social security contributions into taxes. This provides an incentive to remain outside the formal economy, outside the social security system which, incidentally, provides health care and survivor benefits as well as retirement pensions.
Oxaca’s legislation provides not only monthly cash pensions of 500 pesos (39 US dollars), but also “complementary benefits” such as life insurance (50 thousand pesos for accidental death, 7,500 pesos for natural death), accident insurance (500 pesos for each day of hospitalisation, up to 10 days), discounts on purchases in participating stores, and free telephone calls to the United States and Mexico. These benefits are provided by the state government to each resident aged 70 years or older, irrespective of the source of their ‘universal’ MX$500 pension.
Beneficiaries of Oaxaca’s social pension, which numbered 33,000 last year, have dropped to about 13,000 because of the expansion of the federal 70+ scheme to urban areas, and are expected to fall further, to 11,000. Oaxaca’s 70+ beneficiaries, in contrast, grew from 172,532 at the end of 2011 to 185,924 by mid-2012.
Detailed information, with links, follows in Spanish.
· Oaxaca, segundo estado, después del DF, que dará cobertura universal a mayores de 70 años
· Anuncia iniciativa de Ley para hacer efectiva esta garantía y sea obligación del Estado proteger a los adultos
· Los beneficiarios recibirán mil pesos bimestrales; seguro de vida, por accidente, gastos médicos, descuentos en centros comerciales y llamadas telefónicas gratuitasGovernment of Oaxaca, “Gabino Cué inicia entrega de tarjetas Bienestar a 33 mil Adultos Mayores“, 3 August 2011
Que ante estos escenarios de necesidad y de rezago, ha sido propósito de las políticas públicas de la presente administración lograr la universalidad en la cobertura del apoyo a los Adultos Mayores de 70 y más años en el Estado, atendiendo a las localidades con población mayor a 30,000 habitantes y que no reciben apoyo Federal del Programa 70 y más.
Government of Oaxaca, “Pensión Alimentaria Bienestar para Adultos Mayores de Setenta y Más Años del Estado de Oaxaca“, accessed 5 Oct 2012.
Regulations of the Programme – 30 January 2012.
Modifications to the Programme – 9 March 2012
De 22 mil adultos mayores que atendía el gobierno del Estado a través del programa de pensión alimentaria, 9 mil que no son pensionados ni jubilados ni de ningún sistema social, pasaron a depender del gobierno federal y recibirán únicamente el pago bimestral de mil pesos, reveló el doctor Alfonso Aquino Hernández.
Los demás beneficios como recibir los deudos de 50 mil pesos por muerte accidental del adulto, 7 mil 500 por muerte natural y 500 pesos diarios por 10 días, a causa de un accidente que lo lleve a ser hospitalizado, los seguirá otorgando el gobierno del Estado a los 22 mil adultos.
Se nos quedan 12 mil 973 adultos mayores, hombres y mujeres, reveló el director del programa de Pensión Alimentaria de Adultos Mayores del gobierno del Estado de Oaxaca, doctor Alfonso Aquino Hernández ….
Anticipó que puede haber otra baja simbólica no mayor a las 2 mil personas, que falta por afiliarse al gobierno federal.
Guillermo Castillejos Ávila, “Apoya Gobierno a más de 12 mil adultos mayores; paga 13 mdp cada bimestre“, e-oaxaca.mx, 08 Septiembre 2012.
Tags: Mexico
