Petroleos Mexicanos reached an agreement with its union to create individual retirement accounts for incoming workers and to raise the retirement age, easing the company's pension liabilities.
Mexico's state-owned oil producer, which last month reported the biggest quarterly loss in its history, said it increased the retirement age to 60 from 55 for workers that have been with the company for less than 15 years. The agreement was stipulated by the government in exchange for absorbing part of the current $90 billion that Pemex holds in pension obligations.
In September, Pemex and the union agreed to stop linking pension payments to annual salary increases, effective this year. That same month, the company's capital spending budget for next year was cut by 73 billion pesos ($4.4 billion) to 293 billion pesos, the lowest allocated since 2007.
Pemex's pension liabilities, which have doubled in the past five years, are by far the largest of any oil and gas company in the world. They're almost four times those of Exxon Mobil Corp., which has the second-largest at $24.4 billion.