The Government entered this Monday to Congress the draft of the pension reform. This is how the process begins, where parliamentarians already see an extensive discussion about the differences that exist between the ruling party and the opposition.
This Tuesday the processing of the pension reform introduced by the Government would begin in Congress, Valparaíso region.
The document issued by the Executive Branch contains more than 400 pages, containing the pension reform bill, in addition to the financial and regulatory impact report.
In the core, the bill contemplates the end of the AFPs and the transformation of these entities to invest the funds, a mixed system that considers a 10.5% individual contribution and another 6%, charged to the employer.
The document also gives an account of other aspects that are interesting for the system in general and for the economy, in view of the Government.
It realizes derivatives such as a positive impact on formal work, consumption, GDP per capita, savings, among other areas. The only negative variation measured in this report is in the net wage bill. Another point present in the text is the consequences, whether positive or negative, that the increase in the taxable ceiling will have, which will be gradual in the case of the individual contribution; It will generate an increase in spending for medical licenses corresponding to Fonasa, at the same time higher income for Fonasa and the Institute of Labor Security.
President Gabriel Boric and the Minister of Labor, Jeannette Jara, criticized again that the AFPs want to keep the business, over improving pensions.
“What the project does is end the business they have had all this time at the expense of pensioners and Chilean contributors. The AFPs do not make any reference to how pensions should be improved in Chile“, said the Minister of Labor.
Foresee processing complex
From the opposition, meanwhile, they have already raised several points that they do not like about the reform. For this reason, they demand that the ownership of the funds be clear; that they are inheritable and the freedom to choose between a private and public system; as well as separating the reform from the modifications that they want to make to the Universal Guaranteed Pension (PGU).
This was stated by the deputy Cristián Labbé (UDI) and member of the Work Commission.
“The important thing here is whether the government is going to fall in love with your idea, also taking into account how open the government is to receiving ideas from the right. We have said that 6% has to go to individual accounts and it has to be the workers’ money. We hope that the Government will listen to us”, said the parliamentarian.
The independent deputy, Andrés Giordano, also a member of the Labor Commission and close to I Approve Dignity, he maintained that the right seems to be seeking to maintain the AFP business, which is why it sees the processing of the pension reform as difficult.
The initiative has simple urgency, that is, 30 days for discussion from the start of its processing.