The Baja California Sur state Congress unanimously approved a constitutional amendment on March 26 that limits public sector pensions and retirement payouts to no more than half the salary of Mexico’s federal president. The reform modifies Article 127 of the BCS state constitution and applies across all levels of government in the state.
The pension cap covers employees of decentralized agencies, public enterprises, and government trusts at the federal, state, and municipal levels operating within BCS. Mexico’s president currently earns roughly 2.1 million pesos per year (about $105,000 USD), which would place the maximum allowable pension at approximately 1.05 million pesos annually (around $52,500 USD).
Exemptions for Military and Voluntary Savings
The reform includes several carve-outs. Members of the armed forces are exempt from the cap. Voluntary retirement savings contributions made by individual workers are not affected, nor are union contributions to supplementary pension systems. Non-contributory pensions, which are social safety net payments for vulnerable populations, also fall outside the new limit.
Legislators framed the measure as an anti-corruption tool rather than an attack on workers’ rights. The unanimous vote in the state Congress, with no dissenting voices from any party, points to broad political agreement on the need to rein in pension costs. Mexico has faced growing scrutiny over generous retirement packages for senior government officials, and several states have moved to impose similar limits in recent years.
What the Reform Means for BCS Finances
The amendment targets what critics have long called “golden pensions,” the outsized retirement benefits some high-ranking bureaucrats and political appointees have collected. By tying the ceiling to the president’s salary, BCS joins a national trend anchored in reforms first championed by former President Andrés Manuel López Obrador, who made the presidential salary the legal ceiling for all public compensation.
For the state of BCS, which relies heavily on tourism revenue and has a relatively small public sector compared to larger Mexican states, the pension cap could ease long-term fiscal pressure. State pension obligations have been a growing line item in budgets across Mexico, and capping them provides a predictable ceiling for future liabilities.
The reform takes effect upon publication in the state’s official gazette. It was first reported by BCS Noticias.