Pensions and retirement plans—Mexico—Q&A guide
Pensions and retirement plans—Mexico—Q&A guide

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Pensions and retirement plans—Mexico—Q&A guide
  • 1. What are the main statutes and regulations relating to pensions and retirement plans?
  • 2. What are the primary regulatory authorities and how do they enforce the governing laws?
  • 3. What is the framework for taxation of pensions?
  • 4. What is the state pension system?
  • 5. How is the state pension calculated and what factors may cause the pension to be enhanced or reduced?
  • 6. Is the state pension designed to provide a certain level of replacement income to workers who have worked continuously until retirement age?
  • 7. Is the state pension system under pressure to reduce benefits or otherwise change its current structure in any way on account of current fiscal realities?
  • 8. What are the main types of private pensions and retirement plans that are provided to a broad base of employees?
  • 9. Are employers required to arrange or contribute to supplementary pension schemes for employees? What restrictions or prohibitions limit an employer’s ability to exclude certain employees from participation in broad-based retirement plans?
  • More...

Pensions and retirement plans—Mexico—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to pensions and retirement plans in Mexico published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2020).

Authors: Sanchez DeVanny Eseverri SC—David Eugenio Puente Tostado; Alfredo Kupfer Dominguez

1. What are the main statutes and regulations relating to pensions and retirement plans?

The Social Security Law is the main regulatory law regarding pensions. Other regulatory laws include the Law on Retirement Savings Systems, in particular, the General Provisions Applicable to Private Pensions, issued by the National Commission for the Retirement Savings System.

2. What are the primary regulatory authorities and how do they enforce the governing laws?

The primary regulatory authorities are as follows:

  1. The Mexican Social Security Institute, which enforces the law by carrying out inspections of the employers and checking all the information regarding the employees’ contributions and salaries, and the work done by the employees. The Institute establishes whether a person has the right to a pension and the amount of the pension.

  2. The National Commission for the Retirement Savings System, whose fundamental task is to regulate the Retirement Savings System (SAR) and the Retirement Funds Administrators (AFOREs), which are the institutions that are in charge of managing the retirement funds (those contributed in accordance with the law) and that regulate private pension plans.

3. What is

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