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Mexico: Retirement pension calculations

Mexico: Retirement pension calculations

An administrative court in Mexico City on 20 September 2019 issued a judgment addressing an issue in five proceedings about retirement pension benefits.

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The finding of the administrative court (Décimo Octavo Tribunal Colegiado en Materia Administrativa del Primer Circuito) resolved that a “unit of measure and update” (unidad de medida y actualización (UMA)) did not apply because a retirement pension is a social security-type benefit derived of an employment relationship and, thus, is based on the salary history. The UMA is federally established amount (much like the minimum wage is an established amount). The court held that in determining pension payments or limits, the pension-related amount is determined without regard to the UMA.

While the effect of the court’s decision may be limited (due to its jurisdictional limits), the judgment nevertheless may be cited as support in other disputes pending before other federal entities or courts.

Read a September 2019 report (Spanish) prepared by the KPMG member firm in Mexico

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