America Movil subsidiary Telmex has reached an agreement with its workers union on retirement conditions (pensions) applicable from January 2023 to Telmex’s new employees.

The new agreement reduces the maximum retirement benefit from 80 percent to 60 percent of the employee’s last salary, as integrated with certain benefits. Employees with 35 years of service and at least 65 years old will have the retirement benefits under the new agreement.

The current agreement with workers allows retirement after 35 years of service without an age requirement. The only exception under the new agreement to retire before 65 years old is for employees at least 60 years old and with 37 or more years of service.

The new agreement allows Telmex’s active and retired employees to convert part of their pension liability into shares representing Telmex’s capital stock. This is an optional stock plan.

Employees participating in the stock option plan receive Telmex’s shares with equal rights as those of Telmex’s current shareholders. Telmex will unify its current series of shares into a single series, exclusively made by ordinary and full voting rights shares.