translated from Spanish: One year after the start of its processing: Government criticizes opposition for sustainability proposal in pension reform

One year after the start of its processing, positions between the Government and the opposition on pension reform continue to move away.
At present, there are no agreements between the two formal proposals that exist: that of the Executive, which has the support of the House, and the alternative raised by the opposition.
The additional 6% quote remains the butt stone between the two positions. The Currency, in this line, proposes to allocate equal parts, 3% and 3% to a distribution component and an individual savings component. Meanwhile, the opposition plans to bring all that 6% to a collective savings fund under the figure of “notional accounts”.
This model functions as an individual savings account, based on the contribution of each affiliate, with the difference that the profitability of the fund is defined by 4% compared to the average salary of each individual and 2% compared to the average salary of all quoters.
The Minister of Labour, María José Zaldívar, questioned this opposition proposal: “How are we going to make this proposal that delivers defined benefits, especially in the early years, can maintain them over time and what would these exhaust valves be not achieved by a sustainability issue?”
On the opposition side, Senator PS Juan Pablo Letelier criticized this position by Minister Zaldívar: “We seek for profitability purposes the same parameters that the Executive used, may or may not be correct, I do not get into that discussion.”
The initiative has no urgency yet and remains in the hearing stages.

Original source in Spanish

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