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.