translated from Spanish: AFP criticize government project requiring independent trading

the Government yesterday sent to Congress the draft law amending the incorporation of the self-employed to the welfare system. The proposal obliges quote to who issued ballots of fees for five or more monthly minimum income per year and who are under the age of 55 years for men and less than 50 years for women to January 1, 2012.
The project envisages a transitional period as part of the basis of 10% mandatory retention, but with a view to raise the remaining percentage gradually for eight years. The objective is that rising 0.75% per year it would reach 16 percent in 2026 and then, in the ninth year, finally reaching 17%.
But that is not all. The payment of contributions will be made in the annual declaration of income tax of each year, where there is an order of priorities: first will go to the disability and survival insurance. Second to social insurance against risks of accidents at work and occupational diseases. Third will be paid to law Sanna. Fourth joint health contributions. And finally they go to pensions.
Being in last place generated discomfort in the Association of AFP. “Back pensions were for the tail wagon, because everything else is priority to pensions. The short term over the long term is privileging”, said the President of the Guild, Andrés Santa Cruz, after learning about the initiative.
Santa Cruz remarked that “then do not believe expectations of here is to quote for future retirement because that’s not going to be real or now in the short term”.
According to slogan pulse, on the other hand Martín Mujica, general manager of Cuprum, welcomed the initiative, but regretted that pensions are delayed with other social security benefits. “We understand that there are current needs that cannot wait. We only ask that pensions are not again into oblivion, because in this particular case, the time is vital”, he said adding that”it is important to look at arrest the rate of maximum retention that is intended to achieve, as 17% in 10 years will not be enough”.
On the other hand from pro-life, his general manager Gregorio Ruiz – Esquide, he said that it is good news that the situation of the independent to be incorporated but “we believe that it is urgent to begin saving as soon as possible if we want to improve their pensions”.

Original source in Spanish