Pension funds misspent, official says.

A state official admitted during a legislative hearing that the funds approved by the Assembly to pay for teachers’ pensions were utilized in infrastructure.

Undersecretary of Finance and Planning Miguel Angel Rodríguez reported Monday about the final destination the 2,850 million pesos loan approved by the assembly originally to pay retirement benefits and to avoid bankruptcy of Issstecali, the agency in charge of public employees’ health care and pensions.

Rodríguez said the federal government approved new regulations that forbid state and local governments from spending loan money in infrastructure instead of general services.

Retirement benefits were considered as general services, so the state government had to spend those funds in other areas.

Rodríguez said the funds approved by lawmakers have not been accessed by the state, and explained it is in fact a cap in the credit line voted in favor by assembly members.

The undersecretary also said last year 403 teachers received pension benefits and in 2016 the state has retired 350 more teachers.

Assembly members Mónica Bedoya, Cynthia Ruiz and Francisco Barraza attended the meeting as well as State Education Workers Union Secretary General Agustín Morales and representatives from Issstecali and the secretary of education.