MEXICO

On November 29, the Governing Board of the National Commission for Retirement Savings (CONSAR in Spanish) informed which commissions the Retirement Fund Administrators (AFORES in Spanish) will have to charge during 2022. The text states that almost all of these entities must charge a 0.57% on the balances they manage. The provision will take effect as of 2022.

CONSAR authorized 8 of 10 AFORES to charge a 0.57% commission, thus reducing the average commissions of the system from 0.808% to 0.566%, which implies a reduction of 23 points. According to the entity, workers will benefit from this measure as they will be able to maintain a greater amount of savings in their individual accounts, which will allow them to increase their retirement balance.

For his part, the Secretary of Finance and Public Credit (SHCP), Rogelio Ramírez de la O, said that with this measure “we are moving towards a new scheme in which the worker will be the center of attention and competition will be based on the quality of service and performance”, guaranteeing a “reasonable return for the administrators”. Likewise, the Secretary of Labor and Social Welfare, Luisa María Alcalde Luján, celebrated the decision stating that in this way, the government is moving towards a “solid pension system”.