Retirement Funds Administrators - Accounts

Accounts

Individual retirement accounts contain four separate sub-accounts which are:

• Retirement, lay-off and old age (RCV, "Retiro, Cesantía y Vejez" in Spanish). This sub-account contains funds contributed by the employer, federal government and employee.
  • The employer contributes with an equivalent to 2% of the employee's salary to retirement and 3.15% of the salary to the lay-off and old age account. Contributions take place bimonthly.
  • The government contributes 0.225% of the salary to the lay-off and old age account bimonthly and an equivalent of 5.5% of minimum wage in the Federal District.
  • The employee contributes with 1.125% of the salary bimonthly.
• Voluntary contributions. An employer may also contribute extra funds voluntarily. Additional contributions may be done directly with the Afore or automatically deducted from the employer's salary.
• Housing. This is a sub-account into which employers contribute an equivalent of five percent of the employee's salary. Funds are deposited with the INFONAVIT through the Fondo Nacional de la Vivienda ("National Housing Fund") and the Afore only registers contributions and balances.
• Complementary contributions. This sub-account will contain additional funds contributed by the employer or the employee to increase the pension balance. These funds can only be withdrawn after retirement.