Guatemalan Migrants in the US to Access Old-Age Pension and Family Protection
Guatemalan migrants residing in certain states of the United States will now have the opportunity to contribute voluntarily towards accessing an old-age pension and protecting their families. The proposal, approved by the board of directors of the Guatemalan Social Security Institute (IGSS) in March, aims to regulate the implementation of this new program.
According to recent information released by the IGSS, Guatemalan migrants living in California, Florida, Illinois, Texas, and New York will be able to contribute to the Disability, Old Age, and Survival (IVS) program. They will also have access to the Illness, Maternity, and Accidents (EMA) program, which will provide benefits to their spouses and children under the age of 7.
The Regulations Related to the Coverage of the Social Security Regime for Guatemalan Migrants and Sea Workers have been submitted to the Executive Branch for approval, promulgation, and enforcement.
Under the IVS program, migrants will enjoy several benefits. They will be protected in the event of disabilities caused by accidents, and a disability pension will be granted to them. Furthermore, they will be entitled to an old-age pension upon reaching 60, provided they have made a minimum of 240 contributions. In the event of the insured migrant’s death, their family will receive a survivor’s pension and a death fee from the IGSS. Additionally, the insured will receive a monthly income, three annual bonuses, and various medical services.
The EMA program will provide general medical care and specialist consultations to the spouse and children in Guatemala. It will cover medical examinations, medications, treatments for chronic diseases, hospitalizations, surgeries, pre and postnatal care, as well as pediatric care for children up to the age of 7, including a complete vaccination schedule.
Regarding the contributions, the IGSS has stated that the monthly amount will be Q1,000, and it can be paid monthly, quarterly, semi-annually, or annually. There are three methods available for making the contributions: family members can contribute through remittances received in Guatemala; migrants can pay through bank receivers in Guatemala; and payments can be made using credit or debit cards through banks in the national system.
The importance of remittances to the Guatemalan economy cannot be overlooked. According to the International Organization for Migration (IOM), the survey on international migration of Guatemalan people and remittances in 2022 estimated that 2,993,679 Guatemalans currently live abroad, with 2,141,401 of them sending remittances to Guatemala. The vast majority (97.3%) of Guatemalan migrants reside in the United States, with California, New York, and Florida being the top states of residence. Texas, Virginia, and Georgia also have significant migrant populations.
In 2022, the Bank of Guatemala recorded remittances amounting to US$18,040.3 million, and as of June 2023, the income of foreign currency from remittances reached US$9,108.5 million. A study conducted by the data science firm Cardinal found that family remittances contribute more to Guatemalan family incomes than formal jobs and salaries. On average, the resources received from remittances in 2022 were 1.5 times the average amount of local salaries. In some departments, this figure rose to as much as 8.4 times. Comparatively, the salary mass of Social Security contributors in 2022 totaled Q92,553.44 million, while the monetary mass for family remittances reached approximately Q140,712 million.
The new Social Security program for Guatemalan migrants in the US aims to provide financial security and protection for both migrants and their families. With the substantial contributions made by Guatemalan migrants to the national economy through remittances, this initiative represents an important step towards recognizing their vital role in supporting their families and contributing to the development of Guatemala.
The implementation of the program will be eagerly awaited as migrants seek to take advantage of the benefits and opportunities it offers.