Law 73 of the Mexican Social Security Institute (IMSS) is for those who began contributing before July 1, 1997and it is the most loved because it offers more favorable conditions regarding the calculation of the pension and the requirements to retire.
But, In a short time no worker will be able to access it because its end will come. and there will only be one path left.
What option will remain?
The new generations will only be able to access the Ley 97 and its individual account system, as long as a new scheme does not appear in the future.
The cause is not a decision of the Institute that depends on the federal Government, since it corresponds to the main characteristic of this regime: In a decade, no one will be eligible to join this regime.
When does Law 73 of the IMSS end?
This means that By the year 2035, the majority of the beneficiaries of this IMSS regime will have already retired.
However, some experts consider that, in their entirety, the latest pensions will be between 2039 and 2040practically marking the end of Law 73 in Mexico.
From that moment on, all workers will be subject only to Law 97which operates under a scheme of individual accounts managed by the Afores.
Why is Law 73 of the IMSS the most loved? Benefits
Law 73 of the IMSS is considered more attractive than Law 97 because of the way the pension is calculated.
Under this scheme, the amount is determined based on the average salary of the last 250 weeks of contributions (approximately 5 years), in addition to the total number of weeks worked. This allows the worker to receive a defined and guaranteed pension from the IMSS.
Among its main benefits are:
- The possibility of obtaining a lifetime pension,
- annual increases linked to the minimum wage,
- access to medical services for the owner and his beneficiaries,
- as well as pension for widowhood, orphanhood and disability if necessary.
The difference with Law 97 is because in the latter The amount depends directly on the accumulated savings in the individual account; while in Law 73 the responsibility for payment falls on the IMSS and the Federal Government.
This explains why so many workers view the end of this regime with concern, since its disappearance means that future generations will depend exclusively on their savings in Afore and the profitability obtained during their working lives.
IMSS: main differences between Law 73 and Law 97
Ley 73
- You must be 65 years old at the time of submitting your pension application.
- Having been removed from the Mandatory Regime of the Social Security Law.
- Have at least 500 weeks of contributions registered with the IMSS.
- Have contributed before July 1, 1997.
- Be within the period of conservation of rights, which will be equal to a quarter of the time covered by your weekly contributions, counting from the date of your withdrawal.
Ley 97
- You must be 65 years old at the time you submit your pension application.
- Having been removed from the Mandatory Regime of the Social Security Law.
- Have at least 1,250 weeks of contributions registered with the IMSS.
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A ruling by the SCJN that changed Law 73 of the IMSS
In a historic decision, the Second Chamber of the Supreme Court of Justice of the Nation (SCJN) established that the Social Security Act of 1973 violates the right to equality by establishing different percentages in the calculation of pensions depending on the relationship of the beneficiary.
The failureissued in 2023, indicates that the norm is discriminatory, since it grants a 90% of the pension to the surviving spouse or cohabitant, but only 20% to ascendants (parents of the deceased worker) in case they depended financially on him.
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Based on this resolution, the Court ordered that the parents of the deceased insured have the right to receive the same percentage of 90%equating them with widow’s pensions.