translated from Spanish: Pension reform: Opposition calls for 6% additional contribution to be earmarked for distribution

Labour’s Minister María José Zaldívar held a meeting with the opposition on Monday, in which she was handed over her pension reform proposal, in which they request that the 6% additional contribution be allocated to a collective fund.
The proposal of the opposition differs from that submitted by the Executive, which states that from that 6% of the contribution, 3% will go to solidarity and the other 3% to individual savings.
“We have raised to the Executive that 6% has to be for a collective fund, there has to be distribution and there must be sustainability of this fund. It is essential that there is no more individual capitalization,” said Senate President Jaime Quintana (PPD), according to Emol.
In the face of this proposal, Quintana argued that, as the minister would have told her, “we are not in the antipodes and that is good news. That’s why it’s important to focus in the next few months on a good proposal.”
For her part, the chairman of the Chamber of Deputies’ Working Committee, Gael Yeomans, said that “we believe that there should be at least one point there where the Government recognizes the need to actually have a mixed system. For this it is central that the 6% additional contribution is considered under a solidarity logic managed by a public authority. That’s central.”
Yeomans also explained that another of the opposition’s proposals is to increase the Solidarity Pillar. “Today it is used to finance the most vulnerable 60% of the population and we believe that too is insufficient.”
“We need to finance more people: we have put forward a transitional regime to reach 95% of the population of the Solidarity Pillar, and that is also a proposal we have put forward to the minister,” she said.
“We also believe,” he added, “that in the medium term it cannot be that that 10% compulsory quote administered by the AFPs is not touched. That is, the public authority cannot under any circumstances be able to manage part of that 10% seems to us to be inexplicable to people.”
Finally, Gael Yeomans argued that “We have to signal the public: one is that we do not want one more weight for individual capitalization and another is that we are going to touch the administration of the AFPs currently in the 10% that they already have. And on the other hand we also want to play the Pillar of Solidarity. We need to give social security guarantees and certainties.”

Original source in Spanish

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