Through the Official Gazette, the President expressed his opposition to the whole law with the justification that “it does not contemplate the fiscal impact of the measure nor does it determine the source of its financing”.

The law proposes a monthly update of the assets based on the Consumer Price Index (CPI) and includes an extra compensation of 8,1% for January so that people may equalize their income with the 20,6% inflation rate of that month, in which the Executive granted only a 12,5% increase.

It also provides that the minimum pension must not be less than the value of a basic basket for senior citizens and that the formula cannot be tied only to the CPI, but must take into account salaries.

After being vetoed by the head of State, the regulation must return to Congress, where both Chambers must meet a qualified majority of two thirds in order to reject the President’s decision.

If successful, the bill is approved and the Executive is obliged to enact the law.

jrr/arm/mem/gas