The Supreme Court ruled on Tuesday the government-run Anses is not using the right index to update the pension payments and ordered the social security organization to apply a new system that increases their monthly payments.
The Court ruling came after a lawsuit filed in 2012 by a pensioner, Lucio Blanco, who demanded that increases to his pension payments are calculated through an index that uses the minimum wage set for Industry and Construction workers as reference.
A Court of Appeals had previously ruled in Blanco’s favor but the government had intended to use the minimum wage set for public sector workers as reference instead, similarly to what it did a few years ago when it offered the so-called “historic reparations” to pensioners, which would compensate them for year-old lawsuits many had filed against the government, in exchange for dropping them.
With four votes in favor and one against – from court president Rosenktrantz – the Supreme Court upheld the ruling from the Court of Appeals.
With the previous index, pensions were approximately 60 percent lower. With this ruling, the Court sets an automatic precedent for approximately 11,000 similar cases that are already in the Supreme Court awaiting a ruling, and an indirect one for the roughly 150,000 cases currently battling it in court.
Although the ruling orders the government to pay a significant amount of funds at a time in which it is precisely slashing public spending, government officials were quick to clarify that its coffers will not be significantly impacted. According to Página 12, this is the case because the government will only use funds allocated in its Budget Bill to face lawsuits of the kind.
Since there are more cases now and the total amount to be paid is higher, the government will be able to pay a few rulings while others will have to wait.
In fact, Clarín has reported that the government intends to start making payments in 2020.