Mexican President Andrés Manuel López Obrador's administration has reached an agreement to cut the commissions that Afore pension funds managers charge in order to generate better returns, El Financiero reported.

Deputy finance secretary Arturo Herrera reportedly explained that the reduction — of 3 basis points or 0.03% — will result in roughly 10 billion Mexican pesos of additional savings.

All the Afore systems, including Coppel, Sura and PensionISSSTE, have agreed to the move, according to the report.

According to Herrera, the Afore funds represent 15% of Mexican GDP and fund "a big portion of federal government investment."

As of January 2019, the average fee charged by the top 10 Afores will be at 0.98%, while this year it stood at 1.01% according to official data by the National Commission of the Savings System for Retirement.