translated from Spanish: House Labor Commission rejected 6% individual contribution in pension reform

The Committee of the Labour chamber of deputies issued the pension reform project to the Chamber, without the increase of 6% of the additional contribution paid by the employer. While this point was the main point that the Government had included in the process of the rules but did not reach the necessary votes as the result was six votes in favour, six against and one abstention. The Government’s proposal was that the increase of 6% by 3% should go to an individual capitalization fund from the employer and subtracting it from a solidarity fund, while the opposition pushed for an initiative to target a fund entirely Solidarity. Following the rejection of the article, Commission Chair Gael Yaomans stated that the reason it voted against the 6% quote that «the government does not want to allocate it entirely to solidarity.» The project requires a vote to raise individual capitalization to 13% and we are in a solidarity system. This reform perpetuates the business, does not provide dignified pensions,» she said. He further stated that «we were not going to be available for the increase in individual capitalization as a system understanding what are the consequences of a system as predatory as Chile is, miserable pensions, and we don’t want that for citizens and citizens of our country.» For her part, the Minister of Labour, María José Zaldívar, lamented the decision of the committee and stated that «what is being done is a political point; I am told that this can be fixed later, but it complicates me a little that concept of fixing things afterwards, because we are talking about the needs of people who are very urgent. We would love to have been able to tell people that they were closer to the possibility of their pensions increasing.»



Original source in Spanish

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