New 'final salary' pensions proposed by Mexico's president t

New 'final salary' pensions proposed by Mexico's president to be capped

A reform proposed by Mexican President Andres Manuel Lopez Obrador for retirees to have a pension equal to their final salary will come with a cap on monthly payments, according to a document sent to Mexico's Congress. The draft plan for employees to receive such generous pensions has morphed into one of the stand-out initiatives of Lopez Obrador's sweeping reforms that include judicial, electoral, environmental and other changes. However, the suggestion has raised questions about sustainability and whether Mexico can afford it.

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