The The opposition, represented by Senators Carolina Goic (DC) and Juan Pablo Letelier (PS), presented this Wednesday to the Minister of Finance, Ignacio Briones, and the Minister of Labor, María José Zaldívar, his own proposal for reform of the pension system, which advocates a mixed system focused on the collective savings.
The oppositional approach maintains points to allocate 6 percent of additional contribution to a collective savings fund, unlike the Government project -approved by the Chamber of Deputies in January-, which proposes half (3 percent) to individual capitalization and the other part to a new collective pillar.
However, as in the official reform, it proposes that the extra contribution be charged to the employer and administered by a public entity called the Solidarity Collective Savings Council (CACS).
The initiative of the Executive was dispatched after more than a year of debate and is now being reviewed by the Senate Working Committee, where Letelier and Goic presented the counterproposal.
“Today we have taken up the Senate Labor committee the debate on pension reform and as opposition we have presented our proposal to lay the foundations for a new pension model in Chile that exceeds the current scheme “, explained the socialist parliamentarian, president of the legislative instance.
In addition to the extra 6 percent of the contribution going entirely to the common fund, the opposition project also seeks gradually expand the Solidarity Pillar financed by the State, with the aim of achieving a guaranteed universal basic pension that covers up to the poverty line.
Regarding 10 percent of individual capitalization, the document points to the end of current AFPs, since the individual accounts would be managed by a public institution called Pension Administrator (AP). In turn, the management of these savings would be in charge of “Regulated Fund Managers (GF)”. In this way, the worker could choose one of the GF or that said funds be managed by CACS.
In parallel, it establishes a new regulation for AFP profits, so that in the short term allocate 30 percent of their total net profits to the collective solidarity fund. In addition, they set a profit limit, the excess of which will also go to said fund.
“We invite the Government to a dialogue in August to explore whether there is a possibility of a new pension model”Senator Letelier said after the session of the Working Committee.
This Thursday at 09:00 am the period begins to request the withdrawal of 10 percent of pension savings, which will last one year and will be exclusively digital in its first stage.
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