PREVISIONAL INTEGRATED SYSTEM

Law 26.425

Public forecast system. Unification.

Sanctioned: November 20, 2008.

Promulgated: December 4 of 2008.

See Background

The Senate and Chamber of Deputies of the Argentine Nation assembled in Congress, etc. sanction with force of Law:

PART I

Argentine Integrated System

CHAPTER I

Unification

ARTICLE 1 Provide for the unification of the Integrated Pension and Retirement System in a single public forecasting system to be called the Argentine Integrated Previsional System (SIPA), funded through a supportive distribution system, guaranteeing members and beneficiaries of the existing capitalization regime to date identical coverage and treatment provided by the public forecasting regime, in compliance with the mandate provided by article 14 bis of the National Constitution.

Therefore, eliminate the current capitalization regime, which will be absorbed and replaced by the distribution regime, under the conditions of this law.

ARTICLE 2 The national State guarantees to members and beneficiaries of the capitalization regime the perception of equal or better benefits and benefits than those enjoyed at the date of entry into force of this Act.

CHAPTER II

Affiliates and beneficiaries

Article 3 The services provided under dependency or as an autonomous worker for the periods in which the worker was affiliated with the capitalization regime will be considered for the purpose of the liquidation of the benefits set out in article 17 of Law 24,241 and its amendments as if they had been provided to the public forecasting regime.

ARTICLE 4 Regular retirement benefits, invalidity retirement and death pensions which, at the time of the present period, are paid by the pension and pension fund administrators under the scheme of retirement or fractional retirement schemes shall be paid by the public forecast scheme. The amount of the benefits of the current beneficiaries of the disability, pension and regular retirement benefits of the capitalization system will be valued in accordance with the highest assessment value prevailing between 1 January 2008 and 30 September 2008. These benefits will henceforth have the mobility provided for in article 32 of Law 24,241 and its amendments.

ARTICLE 5o The benefits of the capitalization regime provided for in Act No. 24,241 and its modifications, which, at the time of the present period, are settled under the form of foreseeable life income, will continue to be paid through the corresponding retirement insurance company.

ARTICLE 6 Members of the capitalization regime who have entered amounts in their individual capitalization accounts under the terms of "voluntary assumptions" and/or "agreed deposits" and who have not yet obtained a forecast benefit may transfer them to the National Social Security Administration to improve their predictive status as determined by the regulation or to an administrator of retirement and pension funds, which is to be converted, by modifying their social object.

The national executive branch shall issue the relevant rules for these purposes.

PART II

System resources

ARTICLE 7 In kind, the National Social Security Administration is transferred to the resources that integrate the individual capitalization accounts of the participants and beneficiaries to the capitalization regime of the Integrated Pension and Pension System provided for in Act No. 24,241 and its amendments, with the limitations arising from the provisions of Article 6 of this Act. Such assets shall be integrated into the Sustainability Guarantee Fund of the Public Provisional Repartment Regime created by Decree 897/07.

ARTICLE 8o Los Resources may be used only for payments of the benefits of the Argentine System (PAS) and for the operations permitted by Article 77, second paragraph, of Law 24,241 and its amendments.

In the terms of article 15 of Law 26,222, the assets of the fund will be invested according to appropriate security and profitability criteria, contributing to the sustainable development of the real economy in order to guarantee the virtuous circle between economic growth and the increase of social security resources.

The permitted investments shall be those provided for in article 74 of Act No. 24,241 and its amendments, governing the prohibitions of article 75 of the Act and the limitations of article 76. Investment of funds abroad is prohibited.

(Article replaced by Article 6 of the Law No. 27.574 B.O. 19/11/2020. Watch: from the day following the date of publication in the Official Gazette of the Argentine Republic.)

ARTICLE 9o La The National Social Security Administration will not receive from the administration of funds any of the contributors to the system.

ARTICLE 10. La The full contribution to self-employed persons shall finance the benefits of the public forecasting regime, and in this regard, article 18, subparagraph (c), of Law 24,241 and its amendments.

PART III

Monitoring of resources

ARTICLE 11. . The National Social Security Administration, which operates in the orbit of the Ministry of Labour, Employment and Social Security, shall enjoy financial and economic autonomy, subject to the supervision of the Bicameral Commission for the Control of Social Security Funds established within the framework of the Honorable Congress of the Nation.

This commission shall be composed of SEIS (6) senators and SEIS (6) deputies, who shall be elected by their respective bodies, which shall establish their internal structure, having as a mission to constitute and exercise the coordination between the National Congress and the national executive branch, for the purpose of the implementation of this law and its results, and must inform the respective legislative bodies above all the process to be carried out in accordance with the provisions of this law.

In order to fulfil its mandate, the Commission shall be informed permanently and/or to its requirement of any circumstances arising in the development of the items relating to this Act, with the information provided with the relevant documentation.

It may require information, make any comments, proposals and recommendations it deems relevant and give opinions in its affairs. To this end, the bicameral Commission is empowered to issue its own operating rules.

ARTICLE 12. de Trust in the area of the National Social Security Administration the Council of the Argentine Integrated Previsional System Sustainability Guarantee Fund, whose purpose will be to monitor the system's resources and will be composed of:

(a) A representative of ANSES;

(b) A representative of the Chief of Staff of Ministers;

(c) Two members of the Consultative Body for Retired and Pensioned Persons operating in the field of ANSES;

(d) Three representatives of the most representative workers ' organizations;

(e) Two representatives of the most representative business organizations;

(f) Two representatives of the most representative banking entities;

(g) Two representatives of the Congress of the Nation, one for each House.

The members of this Council shall exercise their function as ad honórem and shall be appointed by the National Executive Branch on the proposal of the respective entities and agencies.

PART IV

Retirement and pension fund managers

ARTICLE 13. . In no case, any compensations that may correspond to the pension fund administrators may exceed the maximum amount equivalent to the social capital of the liquidated administrators according to the conditions established by the regulation of this law. To that end, the national State, if appropriate, shall hand over to the shareholders of such entities, public titles issued or issued by the Argentine Republic, taking into account a minimum timetable for disposing such titles to avoid any impact on the contributions thereof, and also allowing the National Social Security Administration to have a priority right to repurchase such titles.

ARTICLE 14. . Through the relevant areas, in the cases of extinction of the employment relationship for direct dismissal provided by the administrator of retirement and pension funds, all necessary acts will be carried out to ensure the employment of non- hierarchical dependants of pension and pension fund administrators who choose to join the national State in any of its units that it establishes for that purpose, with recognition of the age for the purposes of legal leave.

The incorporation into the State shall be carried out under article 230 of the Labour Contracts Act.

ARTICLE 15. . The medical, technical, auxiliary and administrative personnel performing before the medical commissions and the Central Medical Commission established by article 51 of Law 24,241 and their amendments shall be transferred to the Superintendence of Labour Risks, in the proportion and opportunity necessary for its operation, as determined by the Ministry of Labour, Employment and Social Security.

For the purposes of seniority in the employment of staff transferred, it will be considered as a time of service that has been effectively worked since the beginning of the relationship with the assignor. The necessary real estate, furniture and technical equipment should also be transferred for the proper functioning of the medical commissions.

The costs required by the medical commissions and the Central Medical Commission shall be financed by the National Social Security Administration and the occupational risk insurers, in the form and proportions established in the regulation.

PART V

General regime

ARTICLE 16. . Affiliates of the Argentine Integrated Provident System shall have the right to the perception of an additional permanence benefit that shall be added to the benefits set out in section 17 (a) and (b) of Law 24,241.

The monthly availability of this benefit will be determined by computing UNO and MEDIO per SCIENTO (1.5 per cent) for each year of services with contributions made to the Argentinean Integrated Previsional System in the same form and methodology as the one established for compensatory provision.

In order to access this benefit, the participants must establish the requirements set out in article 23 (a) and (c) of the said Act.

For the purposes of such aspects as mobility, supplementary annual benefit and others inherent in the additional permanence benefit, it is assimilable to the provisions established for compensatory allowance.

ARTICLE 17. . Refer to article 81 (e) of the Winning Tax Act, which was ordained in 1997 and its amendments, and article 113 of Law 24,241 and its amendments.

ARTICLE 18. La The National Social Security Administration is subrogated from the obligations and rights that Law 24,241 and its amendments have assigned to the administrators of retirement and pension funds.

PART VI

Transitional arrangements

ARTICLE 19. La The National Social Security Administration shall take the necessary measures to operationalize this law in respect of receipt of contributions and payment of benefits for ordinary retirement, retirement for invalidity and pension for death within the period of SESENTA (60) days from the date of entry into force of this law.

ARTICLE 20. . This law is of public order, any legal provision that is opposed to it is repealed.

ARTICLE 21. La This law shall enter into force from the date of its publication in the Official Gazette.

ARTICLE 22. . Contact the executive branch.

IN THE SESSION OF THE CONGRESO ARGENTINO, IN GOOD AIRES, TO THE VEINTS OF THE MONTH OF NOVEMBER OF THE YEAR DOS MIL OCHO.

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JULY C. C. COBOS. EDUARDO A. FELLNER. . Enrique Hidalgo. . Juan H. Estrada.