Baja California Law Reform

Governor Marina del Pilar Ávila leads urgent reforms to overhaul Issstecali law, capping pensions and separating health services to address the state’s mounting financial crisis.

## Imminent Reform to the Issstecali Law

In a critical move, the Governor of Baja California, Marina del Pilar Ávila Olmeda, has prepared a comprehensive reform package targeting the law governing the Institute of Security and Social Services for the Workers of the State and Municipalities of Baja California (Issstecali). This reform is set to impact benefits for mutualistic pensions, an issue that has long haunted the state’s administration.

Upon taking office, Marina del Pilar Ávila found a dire financial situation regarding pensions and retirements, a crisis that traces back through several administrations. Historical reliance on debt to cover these obligations is no longer viable. According to financial analysis by OBSERBC, Issstecali’s liabilities have reached a staggering 230 billion pesos, with annual payouts ranging between 13 billion and 15 billion pesos.

Corruption within state governments and unions has exacerbated the issue, creating a critical situation that demands immediate reform. The current system, burdened by a 30-year-old mutualistic pact, pulls all public entities into debt to meet payroll and municipal contributions.

The proposed reform seeks to cap the dynamic retirement benefits, which currently allow for exorbitant pensions of up to 230,000 pesos monthly. It will also limit future generations to a maximum pension level and recognize only the benefits explicitly stated in the law, separating health services from pension funds. The goal is to establish financial management schemes that generate returns for pensions.

The initiative isn’t aiming to blame workers or teachers who legally obtained their benefits. However, it will alter expectations of retirement benefits and is likely to face scrutiny and opposition. The support of the upcoming Secretary of Education, Mario Delgado Carrillo, is being sought to liaise with unions and push for the federalization of a significant portion of the state’s educational sector.

Despite the challenging political landscape, with the Governor enjoying majority support in the state Congress and leverage at the federal level, this reform appears set to advance.

**Secondary Article: Pension Reform and Financial Strain in Baja California**

Recent news highlights the ongoing financial strain in Baja California related to pension obligations. The state faces mounting pressure to address these liabilities, which affect a significant portion of its budget.

According to recent reports, the debt strategy used to cover these obligations is now unsustainable, leading to calls for financial restructuring and reform. The current administration under Marina del Pilar Ávila Olmeda is pushing forward with reforms aimed at capping excessive pension benefits and overhauling financial management within Issstecali.

These reforms include measures to separate health services from pension funds and set maximum pension caps to sustain future payouts. The state is also looking to federalize portions of its educational sector to alleviate some of the burden.

As Baja California navigates these reforms, the focus remains on securing long-term financial stability while managing the immediate impacts on workers and retirees reliant on the existing pension structure.

For ongoing updates on this developing story and its impact on Baja California’s public sector, stay tuned to TJGringo.com.