In an indication that Mexico's pension reform is on track after an unexpected delay in November, the Mexican government on Monday endorsed 18 companies seeking authorization to create AFOREs, the private companies that will manage Mexican workers' individual retirement accounts under the privatized social security system that will take effect next year.
The CONSAR, the pension oversight commission, will not grant official authorization until the first quarter of 1997, but top officials said yesterday's endorsement makes authorization probable for all 18 companies. Five other prospective AFOREs withdrew, while one company was rejected. The AFOREs will compete for a slice of what could be $5.5 billion in pension funds by the end of 1997.
Last November, the starting date for the privatized system was pushed back to July 1, 1997, from the original target of Jan. 1, 1997.