**Baja California Government Pushes for Issstecali Reform Amid Pension Concerns**
The government of Baja California is urging a reform of the Issstecali pension system as the current structure is proving financially unsustainable. Retired workers enjoy substantial monthly payments, with some earning up to 260,000 pesos, drawing attention to the need for an overhaul.
Marco Antonio Moreno Mexía, Baja California’s Secretary of Finance, highlighted that 95% of Issstecali’s financial challenges stem from the existing pension system. The current rules allow workers to retire at a relatively young age with high pensions after contributing minimally. Notably, the maximum pension Issstecali offers reaches 350,000 pesos monthly, starkly contrasting with the 70,000 pesos cap set by the Mexican Social Security Institute (IMSS).
Amid these disparities, approximately 1,800 retirees from Issstecali receive over a million pesos annually. Moreno Mexía emphasized that workers currently contribute only 5% to 10% of their pension incomes, far less than the 60% seen in other social security systems. The generous retirement age and benefits result in a “replacement rate”—the rate of final salary replaced by the pension—between 160% to 200%, in sharp contrast with the national average.
Baja California’s government aims to avoid borrowing to cover the deficit. However, the State Bureaucrats’ Union has resisted changes, attributing financial mismanagement as the primary issue. An external audit of Issstecali is underway to support the proposed reforms.
The government promises transparency and collaboration in reform discussions, emphasizing the long-term benefits to union members.
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**Secondary Article: Pressure Mounts Against Issstecali Reform from State Unions**
While the Baja California government persists in its pursuit of pension reform, union opposition strengthens. Many union leaders argue that poor administrative practices, rather than pension structures, have driven Issstecali into crisis. As opposition grows, unions are urging alternative solutions such as financial restructuring instead of adjusting existing pension benefits.
Amid ongoing tensions, the unions demand comprehensive consultations to ensure that reform measures do not infringe on existing labor rights. They assert that pension schemes have been fundamental rights protected under current agreements and insist on prioritizing an external financial audit before proceeding with legislative changes.
This resistance adds a layer of complexity as the government works to balance financial sustainability with protecting the rights of state workers. The outcome of ongoing discussions and the forthcoming audit will be pivotal in shaping the future of Issstecali’s pension system.
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