Argentina Prepares Decree to Overhaul Military Social Security

Argentina's government prepares a decree to overhaul the military's social security system amid a financial crisis. The IOSFA faces a massive debt, and proposals to increase military contributions are causing political friction.


Argentina Prepares Decree to Overhaul Military Social Security

The national government is ready to sign a decree that would completely redefine the structure of the social security for the Armed Forces, amidst a deep financial and healthcare crisis. Official sources indicate that the total debt of the Armed Forces Social Institute (IOSFA) is currently around 300 billion pesos, while the monthly operational deficit is between 10,000 and 15,000 million. This situation, they say, has worsened in recent years, especially after the current government's decision to cancel the last two installments of the salary equalization process with the security forces, begun in 2023. «The only real way to finance the social work is by increasing salaries, not contributions,» stated a high-ranking military official consulted, who was skeptical about the political and operational viability of an increase in contributions. The initiative contemplates deep changes in the Armed Forces Social Institute (IOSFA), which drags a millionaire deficit, and opens a sensitive debate: the possibility of increasing the contributions made by military personnel, even on additional salaries for specialty or destination. The decree under study provides for the formal dissolution of the IOSFA and the creation of a new entity, which would be called the Armed Forces Social Security (OSFA). In this context, a contribution increase for military personnel appears as a contradictory and potentially explosive political signal. If the restructuring moves forward, a residual entity would be left in charge of managing the current IOSFA registry and managing the transition to the new social security. Another military source admitted that there is no fiscal margin to recompose salaries in the short term, while internal discontent grows due to the loss of purchasing power and the deterioration of medical coverage. The discussion also generates tensions with the government's general agenda, which promotes a labor reform aimed at reducing contributions to the health system. The reform, far from closing the crisis, threatens to open a new front of conflict between the Government and active and retired military personnel. While the decree advances through the administrative circuits, complaints about the lack of services, delays in reimbursements, and suspension of medical services continue to accumulate. According to official data, the total debt of the IOSFA is currently around 300,000 million pesos, while the monthly operational deficit is between 10,000 and 15,000 million.