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AFP Association criticizes government pension reform: “It poses risks that are not being considered today”

The Minister of Labor and Social Welfare, Jeannette Jara, met this Friday, in offices of the portfolio and for 45 minutes, with the new president of the Association of Pension Fund Administrators (AAFP), Paulina Yazigi.

Also present was Christian Larraín, Undersecretary of Social Welfare; in addition to Constanza Bollmann and Roberto Fuentes, general manager and manager of studies of the guild.

In a meeting of a protocol nature, the Secretary of State discussed with the union representative aspects of the Government’s pension agenda, especially around the pension reform that the Executive is processing in the Chamber of Deputies, and that is already approved in general by the Labor and Social Security Commission of that Corporation.

Minister Jeannette Jara pointed out after the meeting that “we have met with the AFP Association. They came to a protocol meeting to present their new president and, as a Government, we have stated and reiterated our intention that the AFP industry be terminated to make way for a system in which there is a public service in support activities and various investors, both public and private, where people can exercise their right to choose”.

He added that “all of the above so that the efficiency gains derived from the industrial reorganization are transferred to the affiliates, who will be the future pensioners.”

“We hope that the reform continues its course and that the focus is placed, more than on a certain industry, on retirees and contributors, with the aim of substantially increasing the amount of pensions,” he added.

For his part, Yazigi affirmed that “a change as radical as the one proposed by the Government, which gives the State full power to collect, service and manage current and future contributions; it poses risks that are not being considered today. This is not about defending the administrators, as the minister pointed out, but about how to improve pensions in a sustainable way, without mortgaging the future of workers”.

The president of the AFP Association added that “the Government knows, because the experts have indicated so, that its project is not sustainable and it does not maintain the principles that people value most, which are; ownership of their savings, inheritance and most importantly, having the real possibility of choosing who manages our pension savings”.

“We deeply believe that our country advances if we achieve public-private collaboration, and that is why we held the meeting this morning,” the union representative closed.

Source: Elmostrador





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