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Workers who contribute to public institutions such as the Mexican Social Security Institute (IMSS) or the Institute of Security and Social Services for State Workers (ISSSTE) have an Afore service in which they can use all the resources in their account, which means they do not have to give up the pension to which they are entitled by right.
This is known as pension denial and here we will tell you everything you need to know about this benefit that you as an employee, or your beneficiaries, can obtain in the event of the death of the employee.
The pension denial resolution can be applied in cases of old age, unemployment, disability, disability, unemployment, or any other circumstance for which the worker stopped contributing to the IMSS or ISSSTE; it can also be requested for orphanhood, widowhood or ancestry in the event that the beneficiaries are the ones requesting it.
By requesting this benefit, the employee waives the right to obtain a pension and requests to receive the money saved in his or her account.
There are currently two pension regimes, and below we will tell you what they are and what they consist of:
The also called pension under the 73 regime applies to workers who started contributing before July 1, 1997. In order to make this retirement, the employee needs to have at least 500 weeks of contributions, and will be granted a percentage of the pension that would correspond to him/her if he/she waited until he/she reached 65 years of age.
The pension is calculated taking into account the average daily salary of the last 250 weeks of contributions and the salary level.
To determine the pension, the average daily salary of the last 250 weeks of contributions (approximately 5 years) and your salary level are taken into account.
By choosing Law 97, the employee has the possibility of choosing between a pension paid by an insurance company as an annuity, or a programmed withdrawal where the pension is paid directly by the Afore in which he/she is registered.
In the life annuity, the amount of the pension is obtained based on the resources accumulated in the Afore account. The employee contracts an insurance company to provide the service, which pays a monthly payment and covers the death of the pensioner, providing the pension payment to his beneficiaries.
In programmed retirement, the employee contracts directly with the Afore and will receive an amount based on the accumulated balance in his account and the returns obtained, and the pensioner’s beneficiaries will continue to receive a pension in the event of his death.
It is important to consider that the pension is received for a determined period of time, until the resources saved in the Afore account are exhausted.
If you do not meet the requirements established by the Social Security Law, such as reaching 500 weeks of contribution to retire, or 150 weeks in case of widowhood, or you are not in conservation of rights, you can request the denial of IMSS pension, as long as you are at least 60 years old and you can withdraw all the resources of your account in a single exhibition of the total of your resources in the Afore account (except for the SAR 92-97 contributions), and when you turn 65 years old you can also withdraw the SAR 92-97 contributions and the Housing fund.
If you contributed before 1997 and had retirement and housing resources, the delivery of resources will be made until you reach 65 years of age.
The account holder must initiate the process, or his/her beneficiaries in case of disability. They must present documents in original and copy such as: valid official identification (INE voting card, passport or professional ID), proof of address no more than 3 months old, bank statement with the worker’s Standardized Bank Code (CLABE), proof of ownership of the account and their service requests to the corresponding offices.
Go to the IMSS Subdelegation that corresponds to you to make your pension denial request.
Go to your Afore to initiate the process of disposition of resources and ask for your Application for Disposition of Resources.
Present at the Afore branch office the indicated documentation and the completed and signed
Application for Disposition of Resources.
Within a period of no more than 6 working days, the AFORE will make available to you the resources that correspond to you according to the pension plan you have chosen.
If you are 60 years of age or older, and the IMSS rejects your pension denial request, you will be granted the resources from your Afore account, and the Infonavit 92 resources will be delivered to you until your 65th birthday.
In the case of ISSSTE pension denial, the beneficiary can withdraw the balance of his/her account without the right to retire if he/she does not meet the minimum of 25 years of contribution to retire, or 1250 weeks, he/she can withdraw the balance of his/her individual account in a single exhibition.
In case the beneficiaries are the ones who carry out the procedure, they need:
You will receive all the resources accumulated in the Individual Account in a single payment.
The most advisable thing to do is to continue contributing in your job in order to have a fair pension for your retirement, and only opt for the pension denial in extreme cases, such as widowhood, advanced age or disability.
However, you can continue to contribute to the IMSS and maintain your social security system even if you have been terminated; this is done through Modality 40, with voluntary contributions to your pension to increase it, and you will have up to 5 years to complete this procedure from the date you were terminated by your employer.
Yes, if you continue to contribute and also make voluntary contributions to your Afore (regardless of those made by your employer), which are tax deductible with deductions of up to 10% of your accumulated income, you can have a more attractive pension for a dignified and peaceful retirement. The longer the savings period, the better the tax benefits.
If you have been denied the payment of your pension in any public institution, despite meeting all the requirements stipulated, you should know that you are not alone because in LEX & CO we are lawyers specialized in pensions and we will gladly help you claim the right amount based on your years of service. Call us at 5568401076, or send us a message via WhatsApp to tell us about your case.
Carlos Figueroa Rodríguez, attorney at law at Lex & Co. He has more than 10 years of experience in specialized cases involving medical malpractice and insurance claims. He is a graduate of the Universidad Anáhuac and has a Master’s Degree in Constitutional Law and Amparo from the National Bar Association. He also has a Doctorate in Juridical Sciences from the UCI Mexico. Professional license 6577215.
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