Background on Ferrocarriles Nacionales de México (FNM)
Ferrocarriles Nacionales de México (FNM) was established on March 28, 1908, through the merger of two prominent foreign-capitalized railway companies: Ferrocarril Central and Ferrocarril Nacional Mexicano. In 1937, President Lázaro Cárdenas nationalized the railways, transforming FNM from a private entity into a state-owned company.
After decades under government control, in 1995, President Ernesto Zedillo opted to privatize FNM. This led to a bidding process that concluded in 1998 with Ferrocarriles Mexicanos (Ferromex) winning the contract. Ferromex was formed by Grupo México and Union Pacific from the United States, eventually evolving into Grupo México Transportes, now Mexico’s largest railway operator.
Liquidation Process of FNM
On June 4, 2001, the Decree was published in the Federal Register (DOF) to extinguish FNM as a public, decentralized organization and revoke its Organic Law. This marked the beginning of FNM’s liquidation process.
Despite the initial decree, the liquidation process has been prolonged. The deadline to complete it was extended to December 31, 2025.
FNM Pension Details in 2025
In its most recent report to the Chamber of Deputies on the liquidation process, the National Institute for the Return to the People of What Was Stolen (INDE) detailed that during the first half of 2025, 1,182 million pesos were allocated for pension payments and benefits to an average of 16,024 retirees.
This amount included 34.58 million pesos for death payment compensations (previously life insurance).
Pension payments are made through the FerronalesJub Trust, which funds its obligations by annually requesting resources from the Secretariat of Infrastructure, Communications and Transportation (SICT) via Ramo 19 (Contributions to Social Security).
Actuarial Balance and Future Obligations
According to the actuarial study submitted in February 2025, with data up to December 31, 2024, the actuarial balance of FerronalesJub Trust was -21.742 billion pesos for unpaid pensions. The study projected that the trust’s obligation regarding retiree pensions would conclude by 2085.
The negative actuarial balance (-21.742 billion pesos) represents the amount required, according to the actuarial study, to cover FerronalesJub Trust’s obligations towards retirees until 2085.
Key Questions and Answers
- What is FNM? Ferrocarriles Nacionales de México (FNM) was a railway company created in 1908 by merging two significant foreign-capitalized railways, Ferrocarril Central and Ferrocarril Nacional Mexicano. It was later nationalized in 1937 and eventually privatized in 1995, leading to its acquisition by Ferrocarriles Mexicanos (Ferromex), which is now Grupo México Transportes.
- Why is FNM’s liquidation taking so long? The liquidation process of FNM began in 2001, but various factors have led to its prolongation. The most recent deadline for completion was December 31, 2025.
- How many retirees are receiving pensions from FNM? In 2025, there were approximately 16,024 retirees receiving pensions from FNM.
- What is the current financial status of FNM pensions? The actuarial balance for unpaid FNM pensions is -21.742 billion pesos, with projections indicating that obligations to retirees will continue until 2085.
