Mexico Supreme Court validates Welfare Pension Fund decree

Mexico’s Supreme Court of Justice of the Nation (SCJN) has ruled that the decree creating the Welfare Pension Fund (Fondo de Pensiones para el Bienestar) is constitutional. The unanimous decision addressed a challenge brought by 185 deputies regarding the legislative process and the state's authority over individual retirement accounts.

The Court determined that the legislative procedure was valid, noting that any potential irregularities during committee work were resolved through plenary discussion and voting. Furthermore, the ruling validates the transfer of unclaimed resources from retirement, unemployment, and old-age sub-accounts held in AFOREs to the Welfare Pension Fund.

This transfer occurs without requiring a judicial resolution once workers reach age 70 for those affiliated with IMSS, or age 75 for those with ISSSTE. The Court clarified that this does not constitute a loss of property or confiscation; workers and their beneficiaries retain the right to claim these funds, which must be returned with corresponding returns if requested. The Fund is required to maintain reserves for such claims and keep individual records, with the trust managed by the Bank of Mexico under strict transparency and accountability rules.