translated from Spanish: Blumel tries to clarify entanglement on 4% of the pension reform: it will not go to the AFP but to an account of the workers

The creation of a public entity that administers 4% of Cotiz Individual action was the key point that helped the Radical party (PR) and Christian Democracy (DC) approve the idea of legislating pension reform.
Point for the Government with the help of the opposition that the minister of the Segpres, Gonzalo Blumel, valued and took the clean in a complex legislative week for the administration Piñera. In an interview with El Mercurio, the secretary of state said that the main objective of the currency is to improve the pensions of the vast majority of pensioners in the country.
The owner of the Segpres explained that the project increases the income of 2.6 million of older adults who are currently pensioned, increasing the basic solidarity, increasing the contribution of solidarity, creating a new pillar of solidarity to raise the Women’s and middle class pensions with new physical dependency insurance for non-valent older adults.
Moreover, the increase in the 4-point contribution rate-which will be charged by the employer-will be “the long-term solution for pensions to improve,” said Blumel.
Good intention of the government that, wanting or not, generated a confusion over the administration of that 4% of additional contribution.
Blumel advanced that pension savings belong to workers; It will therefore be allocated to the workers ‘ account.
“That 4% will not go to the AFP, and that’s why we’ll create a public council to be in charge of this new quote, which is going to be integral to the individual account of the workers,” said the minister.
It should be mentioned that the confusion was generated after the head of public finances, Minister Felipe Larraín, hold that “not necessarily the public entity will administer the 4% additional”.
Blumel and the opposition
The Secretary of State also mentioned the role of the opposition in the advance of the executive in the Chamber of Deputies. “What we have seen during the first year of government is that the opposition actually has two great souls,” he said.
In Blumel’s view, one is basically obstructive, “who only knows how to say no and reject government projects to cause him political damage” and there is another sector that has increasingly gained strength in the opposition, “which is more open, that believes in dialogue and That he understands that politics is not white or black, and most importantly, he understands that good politics are not slogans, but dialogues and agreements in order to move forward, “he said.
Blumel refers to the DC and says that since the government have seen is the possibility of building institutional agreements with the directive, with its parliamentarians, with the heads of banks, “who have allowed us to approve the idea of legislating tax modernization and Pension reform “.
“More than the executive, what we expect from the opposition is that there are sectors that join this path of search for dialogue and agreements and do not remain locked in their most extreme sectors, in trench positions, pauteados fundamentally by the front Broad and the Communist Party, “he concluded.
 

Original source in Spanish