The Mexican Senate is preparing to initiate discussions on capping the controversial ‘golden pensions’ that have been historically awarded to former employees of state-owned enterprises. Senator Pável Jarero Velázquez, representing the Morena party, announced that a draft proposal from President Claudia Sheinbaum will be introduced on February 23, and it will spark a detailed debate aimed at reducing lavish pensions received by those in high-ranking public administration roles. Currently, some pensions can reach up to one million pesos monthly, which has sparked public outrage as these payments are viewed as excessive.

The proposed legislation aims to limit these pensions to a maximum of 70,000 pesos per month, reflecting a significant decrease in the benefits for individuals with so-called ‘trust positions' within the federal administration. Jarero indicated that there is broad consensus across various political parties including Movimiento Ciudadano, PAN, and PRI to support this initiative, as it aligns with public demands for financial equity and accountability within the government.

Should the measure pass, it would mark a pivotal shift in how pensions are structured in Mexico, addressing long-standing concerns about inequality and abuses within the public pension system. This effort is likely to resonate not only in legislative terms but also among citizens who have called for reform in how public funds are allocated to former government employees, hinting at a larger movement towards fiscal responsibility and reform in governance practices.