Veracruz State Pension Institute faces 4 billion peso annual deficit

Veracruz Governor Rocío Nahle García has acknowledged that the State Pension Institute (IPE) faces an annual deficit of approximately 4 billion pesos and is currently not self-sustaining. To cover pension obligations, the state government has been providing additional contributions because the institute's own resources are insufficient.

Nahle noted that under the previous administration of Cuitláhuac García Jiménez, federal funds intended for other purposes were being allocated entirely to the IPE to ensure pension payments. In response to the financial instability, the Governor has instructed the Secretary of Finance and Planning, Miguel Santiago Reyes Hernández, to analyze alternatives to make the organization financially viable and self-sufficient.

The recognition of this deficit comes amid grievances from workers nearing retirement regarding the use of the 'regulated salary' mechanism, which calculates pensions based on weighted averages.