Expert Clarifies Key Pension and IMSS Rules: What You Need to Know About Your Retirement Funds

MEXICO CITY – In a recent radio segment, renowned host Martha Debayle, alongside labor law specialist Gloria Arellano, widely known as 'Tía Yoya,' delved into critical issues surrounding pensions, the Mexican Social Security Institute (IMSS), and the National Housing Fund Institute (INFONAVIT). The consultation aimed to clarify complex regulations and provide actionable advice to listeners. One listener shared the distressing case of their 72-year-old father, who, after three years of not working, was denied his IMSS old-age pension due to insufficient funds in his individual account. Arellano confirmed that, as of April 2024, a reform to the IMSS law allows funds from workers over 70 who have not requested their pension and are not currently working to be transferred to the Welfare Pension Fund. She advised that individuals in this situation should file a complaint with the Ministry of Finance, specifically with the Unit of Insurance, Pensions, and Social Security, to reclaim their funds. Another query came from a 55-year-old woman, Imelda, who sought advice on initiating 'Modalidad 40' to pension at 60, despite having only 300 weeks of contributions under the 1973 IMSS law. Arellano cautioned against this, explaining that the 1973 law requires over 500 weeks for a substantial pension. She recommended delaying the 'Modalidad 40' until closer to 60 to accumulate more weeks, which would result in a significantly higher pension. Arellano emphasized that attempting to pension with fewer weeks would result in a much lower benefit. The specialist also addressed a question from Georgina, a 55-year-old woman already receiving an invalidity pension under the 1973 Social Security Law, who asked if she could switch to a retirement pension at 60. Arellano unequivocally stated that once an invalidity pension is granted under either the 1973 or 1997 law, individuals cannot later claim an old-age or unemployment pension, as the funds have already been utilized. She urged listeners to exercise extreme caution and understand these critical distinctions.