Mexico’s Senate has unanimously approved a landmark reform to eliminate generous pension benefits, often referred to as “golden pensions,” for former employees of state-owned entities. The move, which passed on Wednesday, March 11, 2026, aims to address perceived inequities in the country’s pension system and comes as President Claudia Sheinbaum’s administration seeks to streamline government spending.
The reform targets pensions paid to retirees from organizations like the Federal Electricity Commission (CFE), Luz y Fuerza, and Pemex. According to reports, the legislation will retroactively limit any pension to no more than 70,000 pesos per month – roughly half the current monthly salary of the President.
While the measure garnered unanimous support in the Senate with 115 votes in favor and six abstentions, concerns were raised regarding its scope. Senator Luis Donaldo Colosio Riojas of Movimiento Ciudadano questioned why the reform does not extend to former officials of state secretariats or members of the military. “This reform applies to workers in para-statal organizations and not to the military,” Colosio Riojas stated, as reported by Xevt. “The justification given is that their rights are constitutionally protected and their regimes are complex. Why are the social security rights of the armed forces protected and not those of others?”
The approved initiative modifies Article 127 of the Mexican Constitution. The bill now moves to the Chamber of Deputies, known as San Lázaro, for further consideration. MSN reports that the Senate’s decision follows a proposal initially sent by President Sheinbaum.
The elimination of these “golden pensions” represents a significant step towards fiscal responsibility, though the debate over its limited application is expected to continue as the legislation progresses through the legislative process. The move underscores the current administration’s commitment to addressing long-standing issues of privilege within the country’s public sector.
The Senate approved the constitutional reform to limit pensions of public entities and sent the project to the deputies.
La Jornada reports that the Senate unanimously approved the elimination of “golden pensions” to former officials.
Expansión Política reports that the Senate approved reducing “golden” pensions to former officials.
