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ANSES

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National Social
Security Administration (ANSES)
Administración Nacional
de la Seguridad Social

ANSES building in Buenos Aires (2015)
Agency overview
FormedDecember 27, 1992;31 years ago(1992-12-27)[1]
Preceding agencies
  • Instituto Nacional de Previsión Social
    (1944–68; 1990–92)
  • Sistema Nacional de Previsión Social
    (1968–90)
JurisdictionGovernment of Argentina
HeadquartersBuenos Aires
Employees16,000
Annual budgetus$40 billion (2011)[2]
Agency executive
  • Mariano de Los Heros[3],Executive Director
Parent departmentSecretariat of Labour, Employment and Social Security
Parent agencyMinistry of Human Capital
Websiteanses.gob.ar

TheNational Social Security Administration(Spanish:Administración Nacional de la Seguridad Social;mostly known by its acronymANSES) is a decentralizedArgentine Governmentsocial insuranceagency managed by theSecretariat of Labour, Employment and Social Securitycontrolled by theMinistry of Human Capital.[3]

In the past, ANSES was under the aegis of the Ministry of Health and Social Development.[4]The agency is the principal administrator ofsocial securityand othersocial benefitsin Argentina, including family and childhoodsubsidies,andunemployment insurance.

Overview[edit]

The majority of Argentina's public social programs, aside from those related to health and housing, are administered by ANSES. Around 95% of Argentinesenior citizens(5.7 million) receive ANSES pensions,[5]whose amount isadjustedsemi-annually.[6]Argentines in the labor force earning less than 5,200pesos(us$350) monthly, are entitled to benefits upon marriage; pregnancy, birth, or adoption of a child; formaternity leaveorprenatal care;and for adisabilityin a child or spouse, as well as to a modestunemployment insurancebenefit for up to 6 months.[7]The most important poverty relief program administered by the ANSES is theAsignación Universal por Hijo(Universal Childhood Entitlement). The benefit, 340 pesos (us$70) a month per child, is assigned to 3.6 million children under age 18 (30% of the nation's total), and includes the deposit of 20% of the check in asavings accountaccessible only upon certification of the child'svaccinationandenrollment in school.[8][9]The program was budgeted at around us$2.5 billion for 2011 (6% of the total).[2]Other recent programs includeConectar Igualdad,which envisaged the purchase of 3 millionnetbooksfor secondary school students and teachers;[10]andPRO.CRE.AR,a subsidized mortgage initiative for moderate income borrowers largely shut out of the nation's tight credit market.[11]

The ANSES is funded by an 11%withholding taxrate andpayroll taxes(56%), as well as by a share ofvalue addedand other tax receipts (22%), contributions from the national budget (17%), andinterestreceipts (4%). Expenses includesocial securitypayments (63%), transfers to provincial and other pension funds (20%), family assistance (12%), and the netbook program (2%); administrative expenses were around 2%.[2]The agency maintains astabilization fund,the Sustainability Guarantee Fund (FGS), which held approximately us$46 billion in a variety offinancial instrumentsas of December 2011, of which 58% was held ingovernment securities,14% inproductive investment,12% intime deposits,and 9% in theBuenos Aires Stock Exchange.[12]

The ANSES issues aCódigo Único de Identificación Laboral(Labor Identification Code) to all registered workers covered under the Public Pension System (SIJP).[13]

History[edit]

Development of pension funds[edit]

Social security was first implemented in what today is Argentina in 1785, when theViceroy of Río de la Plata,Nicolás del Campo,enactedbereavement benefitsfor widows and orphans ofNavypersonnel.[13]These benefits would later be extended toveteransof theArgentine War of Independenceand later conflicts.Mutual aid societiesthat provided disability and pension benefits to members were established throughout the nineteenth century byguilds,as well as byimmigrantassociations; these latter includedUnione e Benevolenzaand theAsociación Española de Socorros Mutuos.[13]

The first official social security system in Argentina was established by Law 4.349, signed by PresidentJulio Rocain 1904. The act, one of the first of its kind inLatin America,[14]provided retirement anddisability benefitsto government employees and created the Civil Retirement and Pension Fund, enrollment in which was voluntary.[15]

PresidentHipólito Yrigoyen,elected in 1916, pursued the extension of these benefits to workers in other sectors. Retirement funds were thus established forrailroademployees in 1921; for those in public services in 1922; and for banking and insurance employees in 1923.[15]He failed, however, to do likewise for retail workers, whose employers staged alockout,and succeeded in scuttling the reform.[16]TheGreat Depressionseriously weakened these funds, and the Civil Service Fund alone suffered a deficit of over twenty times its reserve by 1931.[15]The increase in deductions and subsequent economic recovery allowed further expansion of pension coverage, with funds established in 1939 forportand newspaper employees.[15]

The National Pension System[edit]

Juan Atilio Bramuglia, the first director of the INPS. The INPS became the first social security agency in Argentina

An initiative byJuan Atilio Bramuglia,chief counsel for theUnión Ferroviaria(at the time the most important union in theCGT), and by Labor SecretaryJuan Perón,promoted the Labor Department to a cabinet-level post and, in 1944, established the National Institute for Social Insurance (INPS).[15][17]The INPS converted the voluntary pension funds, which covered 3% of the total population, into a compulsory system for all employees, effective January 1, 1945, and thus became the first universal social insurance system in Argentina.[18][19]Perón, elected president in 1946, had retirement and disability benefits included in the Workers' Bill of Rights, enacted on February 24, 1947; this Bill of Rights was subsequently incorporated into the 1949 Constitution as Article 14-b.[20]Theself-employed,who account for a fourth of the nation's work force, were incorporated into the Independent Workers' Scheme in 1955.[16]The INPS replaced the former guild funds'capitalizationfinancing for aPAYGOsystem,[21]and by 1955, would cover 80% of the population.[19]Participation rates in social security among the self-employed would remain among the lowest, however, and the majority evaded the system in subsequent decades.[14]

Following President Perón's 1955 overthrow, the 1949 Constitution was rescinded. Article 14-b, however, was reaffirmed by the1957 Assembly,thus endorsing the continuity of the social security system, among other social andlabor lawreforms, with the support of most of the nation's political spectrum.[22]A new paymentsindexationsystem was enacted by PresidentArturo Frondiziin 1958. Minimum monthly pensions were set that ranged from 70% (for those retiring at age 60) to 82% (at age 65) of a contributor's real average earnings during the best three years from the last 10 years of employment.[21]This schedule, popularly known in Argentina as the82% móvil,led to deficits in the INPS by 1962, and to the reduction of payments to below the 82% ratio; resulting lawsuits were curtailed by a 1967 order.[6]The myriad funds in the INPS were reorganized in 1968 into a National Pension System (NPS) with three general funds for private and public employees and the self-employed, respectively. Each of thenation's provincesalso maintained pension funds for local and provincial government staff.[21]The 82% ratio was limited to those who contributed for at least 30 years, and in 1973, the latter stipulation was dropped with the caveat that the pension-income ratio would be 70%.[6]

The system's principal weakness became the chronically high rates of evasion by contributors. Participation never exceeded half the estimated work force, and those who contributed typically under-reported income; among the self-employed, evasion rates rose to around two-thirds. The system's finances, nevertheless, remained nearly balanced as late as 1978. Thedictatorshipin power at the time enacted changes that adversely impacted the pension system, however. Indexation of payments was slowed in 1979 to rates well below inflation, and monthly pensions, which remained at 65% of each worker's reported pre-retirement income in 1978, fell to 40% by 1980. The system's revenue framework was also affected by the replacement of employer contributions (15% of employees' wages) for an earmarked share of thevalue added tax(which was raised).[21]The NPS would be further strained by the 1981 collapse of Economy MinisterJosé Alfredo Martínez de Hoz's policies offinancial deregulation.[23]Compliance eroded and with it, the real value of pensions which, by 1987, had fallen to 25% of pre-retirement income. A wave of lawsuits against the NPS thus followed, and in 1986, PresidentRaúl Alfonsínordered aninjunctionagainst further liens on NPS accounts.[6]

The NPS was officially superseded in 1990 by the INPS, an interim agency during whose tenure atwo-tier systemwas established; three pension funds operated by the NPS, as well as three family assistance funds, were merged.[14][21]These changes were adopted, with modifications, in the establishment of the ANSES on December 27, 1992, through Decree 2741/91 signed a year earlier by PresidentCarlos Menem.[1]

ANSES[edit]

The first Director of ANSES was Arnaldo Cisilino, who had directed the INPS. Cisilino oversaw the absorption of the INPS into ANSES, completed in 1994,[13]and had anIBMcomputer system installed in the antiquated agency.[24]Debts stemming from lawsuits filed from 1987 onward were settled in 1993 withgovernment bondsand funds obtained from theprivatizationof the state oil concern,YPF.[14]Cisilino stepped down in 1995, and was succeeded as director by Alejandro Bramer Markovic.[25]Bramer Markovic, who was also named Director ofPAMI(the nationalpublic health insurancesystem for the elderly and disabled),[26]inherited yawning deficits at ANSES, which reached us$2.8 billion in the first half of 1996.[27]

These were exacerbated by numerous factors, including the 1995 recession, and a portfolio of up to 300,000fraudulent pensionsestimated to cost ANSES nearly a billion dollars annually.[27]The most pervasive challenge to the 20 billion-dollar agency's finances, however, resulted from the 1994 introduction of privatepension funds(AFJP), whose enrollees were barred from returning to the ANSES system.[28]He reduced benefit abuse and had charges filed against Cisilino for theno bidIBM contracts, which later resulted in the latter's indictment forfraud.[24][27]Bramer Markovic, however, was an outsider to President Menem's political circle,[26]and was replaced in January 1998 by Saúl Bouer, a formerMayor of Buenos Aires.[28]Bouer, like his predecessor, faced an ongoing wave of lawsuits filed by those contesting their pension determination,[29]which averaged us$300 a month.[28]Bouer advocated a greater willingness tosettlewith plaintiffs, as well as an increase in the us$150 minimum pension. Bouer's proposals were rejected, however, and he resigned in December 1998; he was succeeded by Leopoldo van Cauwlaert.[29]

Newly elected PresidentFernando de la RúaappointedSan IsidroMayor Melchor Posse as interim Director General of ANSES in January 2000. President de la Rúa transferred ANSES from theEconomy Ministryto the Labor Ministry.[30]The agency was near insolvency as a result of a 40% fall in contributions since the inaugural of the private AFJP system, a new recession, and mounting lawsuits.[29]Rulings favoring retirees had cost ANSES us$1.4 billion from 1995 to 1999, and us$2.1 billion in 2000, alone.[31]The President placed ANSES underFederal interventionin November in preparation for his proposed abolition of the agency in favor of the private AFJP system.[32]Posse resigned and was succeeded by formerTucumán ProvinceCongressman Martín Campero.[33]The worseningeconomic crisisprompted President de la Rúa's July 10, 2001, "zero deficit" decree, which led to a 13% cut in public sector wages and pensions alike.[6]Campero resigned, and was succeeded on an interim basis by Douglas Lyall.[34]The crisis forced Lyall to curtail unemployment benefits in order to meet retirement benefit obligations;[35]the resignation of Labor MinisterPatricia Bullrichin December led to Lyall's replacement by Gustavo Macchi.[35]

President de la Rúa resigned amid social unrest on December 21, upon which interim PresidentAdolfo Rodríguez Saádecreed an emergency benefit cap of 2400 pesos per beneficiary for one year.[36]AppointingSergio Massaas Director of ANSES in January 2002, PresidentEduardo Duhaldeenacted the first raise in the minimum pension since 1992 (a one-third increase).[37]Massa was confirmed in the post by PresidentNéstor Kirchnerfollowing his May 2003 inaugural. Massa, who had supported the 1993 law that established the private AFJP network, oversaw the voluntary conversion of around two million AFJP accounts to the ANSES' aegis when this choice was made available in March 2007.[38]He remained as director until 2007, when he was elected Mayor ofTigre.Kirchner's wife and successor, PresidentCristina Fernández de Kirchner,appointed Claudio Moroni in December 2007, and in May 2008, the latter was replaced forAmado Boudou,who had served as the agency's Comptroller since 2001 and as Secretary General since 2007.[39]

The principal weakness in the private AFJP system was the high rate ofcommissions,which exceeded 30% of total monthly contributions, and reached as high as 54%.[40]Private pension funds, moreover, suffered large losses during the crisis from 1998 to 2002, and by 2008 the state subsidized 77% of the funds' beneficiaries, including 40% whose annuities could not cover minimum monthly pensions; of the funds' 9.5 million affiliates, nearly 6 million had stopped making contributions.[41]The2008 financial crisisexacerbated the problem and in October, President Cristina Kirchner announced plans for thenationalizationof the funds' investments of nearly US$30 billion. These accounts were transferred to the ANSES, while leaving contributors the freedom to invest in private pension funds.[41]

PresidentCristina Fernández de Kirchner,Economy MinisterAmado Boudou,and ANSES Director Diego Bossio during the signing of conventions related to the Universal Childhood Entitlement program, November 2009

The resulting Integrated Social Security System (SIPA), administered by the ANSES, would be backed by the Sustainability Guarantee Fund (FGS). The FGS is astabilization fundalso established in response to the 2008 financial crisis, as well as to the rapid growth in the number of ANSES accounts.[42]This latter development began when the transfer of AFJP accounts was made possible in 2007, and was bolstered by the Social Security Inclusion Plan, which allowed the entry of 2.5 million retirees into the system who had earlier been excluded due to insufficient contributions.[6]Boudou was appointedEconomy Ministerin July 2009, and he was succeeded byMortgage BankDirectorDiego Bossio.[43]

President Cristina Kirchner further enhanced the role of ANSES in social policy. She signed the Pensions Mobility Law in 2008, which provides for semi-annual increases in the benefits schedule, thus formalizing a policy adopted by her husband and predecessor, Néstor Kirchner. Minimum pensions, which had been frozen from 1992 to 2002, rose by nearly 600% by 2010.[6]She also enacted the Universal Childhood Entitlement in 2009.[8]The benefit, contingent upon proof of a child's vaccination and enrollment in school, reached 30% of children, and directly resulted in a reduction in the nation's overall poverty rate from 26% to 22.6% within a year of its implementation.[44][45]

Following the loss of theFront for Victory's absolute majorities in both houses ofCongress,opposition lawmakers passed a bill on October 14, 2010, reinstating the82% móvilschedule. The President vetoed the bill, citing the improvements gained by the Inclusion and Mobility Laws, as well as the cost of the bill itself, which would increase ANSES spending by us$10 billion, and force the sale of us$19 billion insecuritiesheld by the FGS (56% of the total in 2010).[37]The size and growth of the FGS portfolio, which grew by 60% inUS dollarterms in the three years after the absorption of AFJP pensions in late 2008, accompanied an increased reliance on the FGS for national budgetary borrowing requirements. The FGS held us$27 billion ingovernment bondsat the end of 2011; a further US$6.5 billion financesfixed investmentby the state or sponsored enterprises.[12]

The agency's stock portfolio, nearly half of which is inTelecom Argentina,Banco Macro,andSiderar,[12]prompted an initiative in April 2011 to extend the number of companies with an ANSES member in theBoard of Directorsfrom 27 to all 42 in which it holds a significant stake.Techint,Siderar's parent company, became the least amenable among these companies to the proposal; a quarter of Siderar stock is owned by ANSES, but company bylaws limited the agency's voting rights to 5%. An agreement was ultimately produced in July whereby Economy Ministry officialAxel Kicillofwould be seated at the board of directors in return for government approval of the company'sdividend policy.[46]

The importance of ANSES in the nation's social policy was further enhanced in June 2012 with the announcement of thePRO.CRE.ARinitiative. Funded by ANSES and managed by theNational Mortgage Bank,thehome loanprogram was projected to make over us$4 billion available over four years to finance the construction of 100,000 new homes for private ownership. These loans would be available to those earning from 1,800 to 30,000 pesos (us$400 to 6,650) a month at relatively low interest rates and long terms (4 to 16%, with initial rates 2% below these, and 20 to 30 years, in each case depending on income), and would be complemented by a grant of 1,820 hectares (4,500 acres) by the National Government.[11]

In December 2015, president Mauricio Macri appointed Emilio Basavilbaso as executive director.

Executive Directors[edit]

Director Term
Arnaldo Cisilino 1992–1995
Alejandro Bramer Markovic 1995–1998
Saúl Bouer 1998
Leopoldo van Cauwlaert 1998–2000
Melchor Posse 2000
Martín Campero 2000–2001
Douglas Lyall 2001
Gustavo Macchi 2001–2002
Sergio Massa 2002–2007
Claudio Moroni 2007–2008
Amado Boudou 2008–2009
Diego Bossio 2009–2015
Emilio Basavilbaso 2015–2019
Alejandro Vanoli 2019–2020
Fernanda Raverta[47] 2019–2024
Mariano de Los Heros[3] 2024–present

References[edit]

  1. ^ab"Decreto 2471/91".Poder Ejecutivo Nacional. Archived fromthe originalon 2012-07-14.Retrieved2011-06-28.
  2. ^abc"Presupuesto Anses. Proyecto de Presupuesto 2011"(PDF).Archived fromthe original(PDF)on 2011-06-27.Retrieved2011-06-28.
  3. ^abcSandra Pettovello puso en funciones a Mariano De Los Heroson ANSES, 27 Feb 2024
  4. ^"Mapa Estructura Jurisdiccion".Archived fromthe originalon 2020-11-29.Retrieved2019-02-14.
  5. ^"Más de 5,7 millones de jubilados y pensionados cobran el medio aguinaldo".ANSES.
  6. ^abcdefg"¿Qué es el 82% móvil?".ANSES. Archived fromthe originalon 2011-07-16.Retrieved2011-06-28.
  7. ^"Trabajadores en Actividad / Asignaciones Familiares".ANSES. Archived fromthe originalon 2011-07-04.Retrieved2011-06-28.
  8. ^ab"Asignación Universal por Hijo".ANSES.
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  11. ^ab"Un plan ambicioso, con tasas muy por debajo de la inflación".Clarín.13 June 2012.
  12. ^abc"FGS Informe Mensual. Diciembre 2011"(PDF).ANSES. Archived fromthe original(PDF)on 2012-04-16.Retrieved2012-06-14.
  13. ^abcd"Institucional: Historia del ANSES".Archived fromthe originalon 2011-08-24.Retrieved2011-06-28.
  14. ^abcd"Pension Reform and the Development of Pension Systems: An Evaluation of World Bank Assistance"(PDF).The World Bank. Archived fromthe original(PDF)on 2012-03-22.Retrieved2011-06-28.
  15. ^abcde"La Caja de Jubilaciones".Seguridad Solidaria.
  16. ^ab"A 103 años de la sanción de la primera Ley de Jubilación".Asociación 50 a 60. Archived fromthe originalon 2012-03-26.Retrieved2011-06-28.
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  19. ^ab"Perón, su Vida Política Relacionada a los Hechos de la Historia Argentina".30 April 2001.
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  21. ^abcdeArgentina: From Insolvency to Growth.The World Bank. 1993.
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  23. ^"El derrumbe de salarios y la plata dulce".Clarín. Archived fromthe originalon 2011-11-03.Retrieved2011-06-28.
  24. ^ab"Procesan a un ex director de la Anses por defraudación".La Nación.
  25. ^"Procesados por coimas".Clarín. 24 December 1998.
  26. ^ab"PAMI: admiten que se paga de más en los contratos".Clarín. Archived fromthe originalon 2012-06-12.Retrieved2011-06-28.
  27. ^abc"La ANSeS suspendió el pago de 36.000 jubilaciones truchas".Clarín. Archived fromthe originalon 2012-06-12.Retrieved2011-06-28.
  28. ^abc"Un ex intendente sería el nuevo titular de la ANSES".Clarín. 3 January 1998.
  29. ^abc"ANSES: todos los meses le inician 5 mil nuevos juicios".Clarín. 15 December 1998.
  30. ^"Interinato para Posse".Clarín. 21 January 2000.
  31. ^"La Anses deja una deuda millonaria".La Nación.
  32. ^"Eliminarán las jubilaciones estatales".La Nación.
  33. ^"Campero sucederá a Posse en la Anses".La Nación.
  34. ^"Accidentado informe de Lombardo en Diputados".La Nación.
  35. ^ab"Desplazaron al director de la Anses".La Nación.
  36. ^"La Anses, con nuevo titular y más retrasos en el pago a jubilados".La Nación.
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  38. ^"Massa, el ex liberal que reestatizó las jubilaciones".Perfil. Archived fromthe originalon 2015-09-29.Retrieved2011-06-28.
  39. ^"Claudio Moroni a AFIP; Boudou a ANSES".26 Noticias.
  40. ^"AFJP: la comisión llega hasta el 54% del aporte".Clarín. 8 August 1998.
  41. ^ab"Analizan cambios profundos en el sistema de jubilación privada".Clarín. 20 October 2008.
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  43. ^"Quién es Diego Bossio, el nuevo y veinteañero titular de la ANSES".Perfil. Archived fromthe originalon 2012-04-01.Retrieved2011-06-28.
  44. ^"Línea de partida para combatir la pobreza, nota del diario".Página 12.
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  46. ^"El Gobierno y Techint acercan posiciones".La Política Online.
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External links[edit]