Next is a key week for the withdrawal of AFP funds, following its enactment. There is even a start date for the process. Deputy Matthias Walker, chairman of the House Constitution Commission, revealed this morning that it will be this Thursday the day the system begins to receive applications. “The funds are there and the system is ready to make 22 million transactions,” the parliamentarian said.
The information was corroborated by the Undersecretary of Social Security, Pedro Pizarro, who told La Tercera that this Thursday, July 30, the AFP will start receiving the formalities. He said that the first stage would be online only and branch applications would not be accepted until a second stage of the process, a date that was not yet defined.
Deputy Walker and Undersecretary Pizarro came before President Piñera, who had not referred to the issue after the enactment of the law last Friday and behind closed doors. The Mandate spoke on Sunday about the disputed measure that will allow affiliates to obtain some of their planned savings. “We hope that earlier this week, after the comptroller takes reason, we can publish the decree. From that moment on, a process is initiated that has certain deadlines,” Piñera said, ensuring that the process will be “fast, simple and safe.”
“I can assure you, that while the responsibility for the delivery of resources lies with the institutions of our planned system, the Government through the Ministry of Health, Interior, Labour, with the participation of the Superintendency of Pensions and the State Bank, is taking all measures to ensure a process that is rapid , simple and safe,” the Mandate said.
Piñera explained that the withdrawal of funds will be safe from a health point of view, to prevent contagion, and from a citizen point of view, “to prevent abuse”. The head of state added that, as a result, “we hope that this process can be carried out in good shape.”
The Chair took the opportunity, without prior consultation, to deepen the reform of the planned system promoted by the Government, which had resurfaced forcefully in the midst of the debate generated by the now enacted reform of the withdrawal of planned funds. The President reiterated “the full commitment” of La Moneda to further push for a profound reform of the planned system. “That was part of our program and it’s and is always going to be our commitment,” he said.
“The first stage we have already completed, with the reform of the Solidarity Pillar, which is already in full implementation and which has meant improvements of up to 50% in basic solidarity pensions, in the solidarity planned contributions, which is already favoring and bringing relief to 1 million 600 thousand Chileans and Chileans who are retired and who are, in addition, the most vulnerable in our country,” he said.
Piñera added that this does not exhaust the process and commented that the second stage, which has two components, is pending: “improving the pensions of the middle class, of women, of non-valid older adults, of all pensioners and future pensioners.” And for that, he added, “there is a bill sent by the Government, which was approved by the Chamber of Deputies and is in the Senate today.”
The Mandate finally indicated that the Executive’s initiative also envisages a “deep restructuring” of the planned system, in order to incorporate more competition, more actors, more openness to the planned industry. In addition to incorporating more transparency, fewer commissions, better pensions and the greater participation of the workers they impose in the administration of their planned savings, “because they belong to the workers,” he concluded.
No doubt taking silver out of the impenetrable AFP system is a historical fact and so is seen by the superintendent of Pensions, Osvaldo Macías, for whom the process is the biggest challenge that the pension system has faced in 39 years.
Macías told El Mercurio that while there is very good coordination to make this process as fluid and safe as possible. The process is so great, the magnitude is such, he said, “that no one can rule out that there will be no problems.” However, Superintendent Macahs commented that “all technical and coordination efforts have been made to make this flow in the best possible way.”
The regulator explained to the morning all operational details of the withdrawal of funds, such as that the application will be without AFP key and only with the identity card. Macías also revealed that from tomorrow they will issue rules to temporarily relax the investment limits of AFPs in some instruments to avoid more dramatic falls in local markets.
