A ruling by the Federal Chamber of Social Security determined that the Kirchnerist mechanism caused a significant deterioration in the purchasing power of retirees
Chamber II of the Federal Social Security Court declared unconstitutional the formula for retirement mobility implemented during the government of Alberto Fernández, due to its application causing a 46.83% loss in the purchasing power of pension benefits.
The ruling represents a new setback for the retirement adjustment scheme of the Kirchnerism, which has been exposed to the strong inflationary acceleration and the inability to protect the real value of retirement benefits.
Judges Nora Carmen Dorado and Juan Alberto Fantini Albarenque analyzed a specific lawsuit against ANSES and ruled that it was appropriate to recalculate the retirement of the affected individual and pay the resulting differences.
Cristina Kirchner.
To justify their decision, the Court compared the accumulated increases between March 2021 and March 2024. During that period, pension benefits increased by 553.55% through the questioned formula.
However, if a parameter linked to price evolution had been used, the increase would have reached 1,129.07%.
The difference reflects the deterioration suffered by retirees' incomes under the mechanism approved during the administration of Alberto Fernández and Cristina Kirchner.
Law 27.609 established quarterly updates calculated based on wages and tax revenue allocated to the pension system, but did not include a variable directly linked to inflation or a floor to prevent the loss of the real value of benefits.
Retired people.
What the Justice Said
The court stated that the situation changed with the inflationary acceleration recorded since 2022. In this regard, it affirmed that “the inflationary acceleration unleashed from 2022 revealed the structural defect of disregarding a variable linked to prices”.
Additionally, the judges pointed out that “the constitutional validity of a norm is not a static attribute that is sealed at the moment of its enactment”.
The ruling also dismissed including bonuses, reinforcements, and extraordinary aids in the comparison, considering them assistance subsidies that do not form part of the ordinary benefit nor reached all retirees.
Pension lawyer Adrián Trocoli explained that the plaintiff had previously obtained a favorable ruling against ANSES for errors in calculating his initial benefit. He also noted that for those who retired before 2020 and do not receive the $70,000 bonus intended to reinforce the minimum pension, the outcome of the claim could represent “a 70% increase in their benefit”.
The resolution establishes that the calculation must be linked to the monthly adjustment regime provided by Decree 274/2024, although it does not imply that ANSES must automatically increase the benefits of all retirees. Each beneficiary must initiate their own legal claim.
