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Pension plans in Buenos Aires

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There are two retirement programs in Argentina: Régimen Previsional Público ( RPP or Sistema de Reparto) and the Régimen de Capitalización ( Sistema Mixto or RCI). The RPP or Reparto is the retirement program managed by the State. The Sistema Mixto or RCI is run by private retirement funds and supervised by the State. New workers have 90 days to decide between the two systems. If no decision is made within 90 days, the worker will be assigned to the RCI program by default, with no option to switch to the Reparto program.

The Reparto program has five elements:

  • Basic Retirement Program (Prestación Básica Universal or PBU): Men must be 65 years old, women 60 years old, and have been enrolled in a retirement program for at least 30 years.
  • Disability Retirement Program ( Retiro por Invalidez): Individuals must be judged to be at least 66% mentally or physically disabled and younger than retirement age.
  • Pensions for deceased members ( Pensión por Fallecimiento de un Afiliado): Granted to the e widow, widower or partner of the deceased, single children age 18 or younger or disabled children of any age .
  • Pensions for diseased retirees ( Pensión por Fallecimiento de un Beneficiario): Granted to the e widow, widower or partner of the deceased, single children age 18 or younger or disabled children of any age .
  • Retirement for advanced age ( Prestación por Edad Avanzada): Members (men and women) aged 70 or older for at least 10 years, five of which must have been during the previous eight years

The RCI System includes the following elements::

Common Retirement (Jubilación Ordinaria)

Men must be 65, women 60 in order to qualify for standard retirement This type of retirement benefit can be received in three different ways:

  • Renta Vitalica Previsional
  • Retiro Programado
  • Retiro Fraccionado

The Renta Vitalica Previsional is a retirement annuity purchased through an insurance company. This company will pay the individual (and/or entitled dependents) a monthly amount until death.

Retiro Programado is a fixed monthly withdrawal based on the the total deposit generated over the years. This program is comparable to a savings program managed by the State Office for Retirement and Pensions ( Administradora de Fondos de Jubilaciones y Pensiones, AFJP).

Retiro Fraccionado is a supplemental benefit for those receiving less than 50% of the maximum state run Prestación Básica Úniversal (PBU). The beneficiary is entitled to the equivalent of 50% of PBU until his/her deposit is used up. The individual must be registered with the AFJP.

Update 29/05/2009


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