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✎ EN Recovery of retirement funds of AFORE accounts

Discussion in 'Mexico' started by Jessica Rodriguez, Apr 3, 2021.

  1. Jessica Rodriguez

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    Hello everyone!

    My name is Jessica, I'm a Mexican lawyer and I'm here to share with you important information regarding your retirement funds as a foreigner that has worked in Mexico.

    According to the Mexican legal framework, every person who is an employee has an AFORE account with the retirement funds despite the nationality of the individual. Once the employee has the required amount of years of work or turns 65 years old, can either gain an allowance or withdraw the funds from their AFORE account.

    What happens when, as a foreigner, you don't plan to retire here in Mexico and after working for some time you want to leave the country and recover the funds in your AFORE account (since it is your money)?

    The legal framework does not consider this particular case. Therefore does not allow any person to retire their funds outside the two circumstances mentioned above.

    Nevertheless, there is a judicial criterion in Mexico City where Tribunals consider that the particular situation of foreigners could entail discrimination against them. From November 2020, every foreigner that has the desire to return to his/her home country and does not plan to stay and retire here in Mexico can withdraw their retirement funds. In order to obtain the authorization to do so, it is necessary to file a lawsuit.

    Feel free to write me with any questions you may have.

    Stay safe!
     
    #1 Jessica Rodriguez, Apr 3, 2021
    Last edited by a moderator: Apr 5, 2021
  2. JWM

    JWM New Member

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    I thought after the court ruling, you could get your funds without a law suit. Is that true regardless of age?
     
  3. Cyrilexpat

    Cyrilexpat Administrator
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    I thought the same, @Jessica Rodriguez Why do you need a lawsuit ? It cost money for the applicant and certainly cost money to the defender (in that case the manager of the AFORE system or the state, to prevent you to do so).
    And in case of a lawsyut, how much does it cost and how long does it take?
     
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    Geraldine Pugh likes this.
  4. rey marion

    rey marion New Member

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  5. rey marion

    rey marion New Member

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    Hello Jessica,
    Could you give me your profesionnel phone number. It is for a french man needing your help about retirement funds as foreigner that has worked in Mexico. I didn't find it on internet. Thank you.
    Marion Rey
     
  6. Jessica Rodriguez

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    Hi JVM. The court ruling does not change the law. It is only a judicial criterion which means that it needs to be applied in every case that the Mexican Tribunals know of. Until the law is not reformed, a lawsuit is needed.

    Hope this helps and if you need more information, do not hesitate to contact me.
     
  7. Jessica Rodriguez

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    Hi Cyrilexpat,

    Unfortunately, the Mexican legal system works this way: a judicial criterion is only mandatory for Tribunals and not for the AFOREs. Therefore, you need to ask the Tribunal through a lawsuit, to authorize the withdrawal of your funds. Until there is a law reform that covers this right for foreigners, the way is to file a lawsuit.

    I agree with you that it implies money and time for both parties. The silver lining is that now in Mexico City the judicial criterion is mandatory, and therefore the result is guaranteed (if you meet the conditions).

    Hope this helps, and do not hesitate to contact me for further information.
     
  8. Jessica Rodriguez

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    Hi Ray. My phone number is +52 5513479403. He can contact me there or send me an email to jessie@conventus.mx.
     
  9. rey marion

    rey marion New Member

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    Hi,
    Thank you very much for your answer.
    Marion Rey
     
  10. DTonyM

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    Hi, my wife and I came to the USA in 2007 through an H1B visa and we recently got our US citizenship. Since we have no intentions to return to live or retire in Mexico, we were wandering if this judicial criterion can apply to us too.
    Thanks!
    Tony
     
  11. Jessica Rodriguez

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    Hi Tony, it may apply to you and your wife if we can proof that it is not your interest to retire in Mexico. You usually proof this if you don't own a house, a business or anything that can attach you to Mexico (sometimes neither relatives). The outcome though it's not guaranteed. Therefore, we recommend that if you prefer to not take risks, you can legally give up your Mexican nationality and then file a lawsuit as a foreigner (legally speaking).

    If you want to talk a conversation to discuss further, send me an email to jessica@conventus.mx or a WhatsApp message to +52 5513479403.
     
  12. Jay Khandeker

    Jay Khandeker New Member

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    Hello Jessica, I worked in Mexico for 7 years (1992-99)
     
  13. Geraldine Pugh

    Geraldine Pugh New Member

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    Great info. I discussed this with another expat recently, who said that the legal fees he was quoted were very high (amounted to something like 30% of the AFORE amount). I have a few more questions.

    1) I currently have around 650 weeks 'cotizadas' with the IMSS. I believe you need 750 now to retire. How would that affect me if I chose to take my retirement payment post age 60 in Mexico/or by withdrawing the funds at that age in a lump sum? In case this is more attractive than the lawsuit route.
    2) If requesting to withdraw the amount, can you apply for the full amount to be withdrawn including anything in the subcuenta de vivienda? Or is the vivienda amount under different laws?
     
  14. JWM

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    Jessica,
    I have had a couple of conversations with the people at Sura, which holds my AFORE. They told me that with proof of living in the US and signing a document saying I will not retire in Mexico, that they can and will transfer funds to a US bank in my name. They say, though, that I will have to physically come to one of their branches in Mexico. We were considering flying to Texas and crossing from Del Rio to Ciudad Acuña. Does this all sound right? Since my experience is that nothing ever happens easily with Mexican paperwork, we likely will just go the lawsuit route rather than risk multiple trips into Mexico, but was curious. Thanks.
     
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