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Mexico Pension Plan
Mexico reformed its pension system in 1997, transforming it from a pay as you go (PAYG), defined benefit (DB) scheme to a fully funded, private and mandatory defined contribution (DC) scheme. The reform was modeled after the pension reforms in Chile in the early 1980s, and was a result of recommendations from the World Bank. On December 10, 2020, the Mexican pension system would again undergo a major reform. Structure Participants in the Mexican system choose from a variety of private pension fund managers called Administradores de Fondos para el Retiro (AFOREs). AFOREs are responsible for managing individual accounts and investing savings in the pension funds called Sociedades de Inversion Especializadas para el Retiro (SIEFOREs). SIEFOREs are separate legal entities with their own Board of Directors, and segregated assets from AFOREs. Pension system prior to 1995 reforms In 1943 the Mexican government ratified legislation designed to provide its workers with social insuranc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pension
A pension (, from Latin ''pensiō'', "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments. A pension may be a "defined benefit plan", where a fixed sum is paid regularly to a person, or a "defined contribution plan", under which a fixed sum is invested that then becomes available at retirement age. Pensions should not be confused with severance pay; the former is usually paid in regular amounts for life after retirement, while the latter is typically paid as a fixed amount after involuntary termination of employment before retirement. The terms "retirement plan" and "superannuation" tend to refer to a pension granted upon retirement of the individual. Retirement plans may be set up by employers, insurance companies, the government, or other institutions such as employer associations or trade unions. Called ''retirement plans' ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pay-as-you-go
{{disambiguation ...
Pay as you go or PAYG may refer to: Finance * Pay-as-you-go tax, or pay-as-you-earn tax * Pay-as-you-go pension plan * PAYGO, the practice in the US of financing expenditures with current funds rather than borrowing * PAUG, a structured financial product * Prepayment (other), especially incremental prepayment; in particular ** Prepaid mobile phone Music * Pay As U Go, a UK garage crew See also * PAYE (other) A pay-as-you-earn tax (PAYE), or pay-as-you-go (PAYG) in Australia, is a withholding of taxes on income payments to employees. Amounts withheld are treated as advance payments of income tax due. They are refundable to the extent they exceed tax as ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Defined Benefit
Defined benefit (DB) pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum, or combination thereof on retirement that depends on an employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. Traditionally, many governmental and public entities, as well as a large number of corporations, provide defined benefit plans, sometimes as a means of compensating workers in lieu of increased pay.Lemke and Lins, ''ERISA for Money Managers'', §1:1 (Thomson West, 2013). A defined benefit plan is 'defined' in the sense that the benefit formula is defined and known in advance. Conversely, for a "defined contribution retirement saving plan," the formula for computing the employer's and employee's contributions is defined and known in advance, but the benefit to be paid out is not known in advance. In the United States, specifies a defined benefit plan to be any pension plan ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Defined Contribution
A defined contribution (DC) plan is a type of retirement plan in which the employer, employee or both make contributions on a regular basis. Individual accounts are set up for participants and benefits are based on the amounts credited to these accounts (through employee contributions and, if applicable, employer contributions) plus any investment earnings on the money in the account. In defined contribution plans, future benefits fluctuate on the basis of investment earnings. The most common type of defined contribution plan is a savings and thrift plan. Under this type of plan, the employee contributes a predetermined portion of his or her earnings (usually pretax) to an individual account, all or part of which is matched by the employer. In the United States, specifies a defined contribution plan as a "plan which provides for an individual account for each participant and for benefits based solely on the amount contributed to the participant's account, and any income, expense ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA), two of five international organizations owned by the World Bank Group. It was established along with the International Monetary Fund at the 1944 Bretton Woods Conference. After a slow start, its first loan was to France in 1947. In the 1970s, it focused on loans to developing world countries, shifting away from that mission in the 1980s. For the last 30 years, it has included NGOs and environmental groups in its loan portfolio. Its loan strategy is influenced by the Sustainable Development Goals as well as environmental and social safeguards. , the World Bank is run by a president and 25 executive directors, as well as 29 various vice ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mexican Social Security Institute
The Mexican Institute of Social Security ( es, Instituto Mexicano del Seguro Social, IMSS) is a governmental organization that assists public health, pensions and social security in Mexico operating under the Secretariat of Health. It also forms an integral part of the Mexican healthcare system. History The IMSS was founded by President Manuel Ávila Camacho on January 19, 1943, in order to satisfy the legal precepts established in the Article 123 of the Constitution. It is constituted by representations of the Workers, Employers and the Federal government. It is the largest social welfare institution in all Latin America. For some time, however, there have been festering signs of trouble in IMSS, not the least being serious financial problems that came to a head in early November 2010. Directors-General Mexican Social Security Law The Mexican Social Security law currently in effect, published in the Official Journal of the Federation (21 December 1995), is the legislati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Defined Benefit Pension Plan
Defined benefit (DB) pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum, or combination thereof on retirement that depends on an employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. Traditionally, many governmental and public entities, as well as a large number of corporations, provide defined benefit plans, sometimes as a means of compensating workers in lieu of increased pay.Lemke and Lins, ''ERISA for Money Managers'', §1:1 (Thomson West, 2013). A defined benefit plan is 'defined' in the sense that the benefit formula is defined and known in advance. Conversely, for a "defined contribution retirement saving plan," the formula for computing the employer's and employee's contributions is defined and known in advance, but the benefit to be paid out is not known in advance. In the United States, specifies a defined benefit plan to be any pension plan ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Carlos Salinas De Gortari
Carlos Salinas de Gortari CYC DMN (; born 3 April 1948) is a Mexican economist and politician who served as 60th president of Mexico from 1988 to 1994. Affiliated with the Institutional Revolutionary Party (PRI), earlier in his career he worked in the Secretariat of Programming and Budget, eventually becoming Secretary. He secured the party's nomination for the 1988 general election and was elected amid widespread accusations of electoral fraud. An economist, Salinas de Gortari was the first Mexican president since 1946 who was not a law graduate. His presidency was characterized by the entrenchment of the neoliberal, free trade economic policies initiated by his predecessor Miguel de la Madrid in observance of the Washington Consensus, mass privatizations of state-run companies, Mexico's entry into NAFTA, negotiations with the right-wing opposition party PAN to recognize their victories in state and local elections in exchange for supporting Salinas' policies, normalizati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
NAFTA
The North American Free Trade Agreement (NAFTA ; es, Tratado de Libre Comercio de América del Norte, TLCAN; french: Accord de libre-échange nord-américain, ALÉNA) was an agreement signed by Canada, Mexico, and the United States that created a trilateral trade bloc in North America. The agreement came into force on January 1, 1994, and superseded the 1988 Canada–United States Free Trade Agreement between the United States and Canada. The NAFTA trade bloc formed one of the largest trade blocs in the world by gross domestic product. The impetus for a North American free trade zone began with U.S. president Ronald Reagan, who made the idea part of his 1980 presidential campaign. After the signing of the Canada–United States Free Trade Agreement in 1988, the administrations of U.S. president George H. W. Bush, Mexican President Carlos Salinas de Gortari, and Canadian prime minister Brian Mulroney agreed to negotiate what became NAFTA. Each submitted the agreement for rati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ernesto Zedillo
Ernesto Zedillo Ponce de León (; born 27 December 1951) is a Mexican economist and politician. He was 61st president of Mexico from 1 December 1994 to 30 November 2000, as the last of the uninterrupted 71-year line of Mexican presidents from the Institutional Revolutionary Party (PRI). During his presidency, he faced one of the worst economic crises in Mexico's history, which started only weeks after taking office. While he distanced himself from his predecessor Carlos Salinas de Gortari, blaming his administration for the crisis, and overseeing the arrest of his brother Raúl Salinas de Gortari, he continued the neoliberal policies of his two predecessors. His administration was also marked by renewed clashes with the EZLN and the Popular Revolutionary Army; the controversial implementation of Fobaproa to rescue the national banking system; a political reform which allowed residents of the Federal District (Mexico City) to elect their own mayor; the privatization of nati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mexican Peso Crisis
The Mexican peso crisis was a currency crisis sparked by the Mexican government's sudden devaluation of the peso against the U.S. dollar in December 1994, which became one of the first international financial crises ignited by capital flight. During the 1994 presidential election, the incumbent administration embarked on an expansionary fiscal and monetary policy. The Mexican treasury began issuing short-term debt instruments denominated in domestic currency with a guaranteed repayment in U.S. dollars, attracting foreign investors. Mexico enjoyed investor confidence and new access to international capital following its signing of the North American Free Trade Agreement (NAFTA). However, a violent uprising in the state of Chiapas, as well as the assassination of the presidential candidate Luis Donaldo Colosio, resulted in political instability, causing investors to place an increased risk premium on Mexican assets. In response, the Mexican central bank intervened in the fore ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Vicente Fox
Vicente Fox Quesada (; born 2 July 1942) is a Mexican businessman and politician who served as the 62nd president of Mexico from 1 December 2000 to 30 November 2006. After campaigning as a Right-wing populism, right-wing populist, Fox was elected president on the National Action Party (Mexico), National Action Party (PAN) ticket in the 2000 Mexican general election, 2000 election. He became the first president not from the Institutional Revolutionary Party (PRI) since 1929, and the first elected from an opposition party since Francisco I. Madero in 1911. Fox won the election with 42 percent of the vote. As president, he continued the Neoliberalism, neoliberal economic policies that his predecessors from the PRI had adopted since the 1980s. The first half of his administration saw a further shift of the federal government to the right, strong relations with the United States and George W. Bush, unsuccessful attempts to introduce a value-added tax to medicines and to build an air ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
