With the approval of the 6% increase in contribution, the draft pension reform was dispatched this afternoon from the Committee on Finance of the Chamber of Deputies, a process facilitated by the agreement reached by the Gobi Christian Democracy.
On Wednesday there is a room session in the morning to continue the processing of this reform, which should be adopted taking into account the understanding of 4 points reached by Labour Minister María José Zaldívar with the Phalangist Members.
The agreement envisages raising the benefit of women, from 2.5UF to 2.7 UF, so as to reach a close amount of 90 thousand pesos, for those who have quoted more than eight years.
In addition, it considers extending from 10 to 20 years the time limit for restoring resources from the Sovereign Funds ($650 million) to be used to fill the shortfall of the first years of the solidarity system.
It was also agreed to strengthen the public entity (CASS) that will be in charge of administering the 6% additional contribution and associated social insurance, and its status would be raised to that of an “Agency”.
Finally, the Government committed to DC “transferring to the Collective Savings Fund those money not claimed by holders or their heirs who remain in the individual accounts (approx. US$ 300 million), which will improve the savings benefits solidarity.”
The increase in contributions was the first point voted on by the Committee on Finance, with eight votes being approved in favour and five against.
In particular, the provision states that “the employer and the self-employed shall make a contribution, of their position, equivalent to 6 per cent of the taxable remuneration and income. Of this contribution, 3 per cent will go to the Additional Planned Savings and 3 per cent will go to the Solidarity Collective Savings Program.” In addition to the standard already mentioned, indications relating to four other articles, all approved by a majority, were voted on.
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