President Sebastián Piñera announced wednesday night that the government will send indications to the planned reform that the Senate processes in its second process and that on the same day it was generally approved by the Labor Commission of the upper house.
Piñera said that the first stage of the reform, the strengthening of the solidarity pillar, which is already underway, improved the contribution by 50% and has benefited 1.7 million pensioners.
The Representative, however, assured that the second stage of the reform was pending and said that the indications would aim to expand the pillar in solidarity with the middle class, from 60% of the population to 80%. «This strengthened solidarity pillar will benefit 2 million pensioners,» he said.
In addition, it added that this increased by 480 thousand people who joined the pillar and anticipated the readjustment for people between the age of 65 and 74, which corresponded on 1 January 2022.
Piñera assured that with the modifications, the basic solidarity pension will improve, so that no pensioner has a pension under the poverty line.
The Representative recalled that the reform increases the employer’s in-office contribution by 6%, amounts that will be administered by a public agency called the Social Security Board of Directors, and half of which will go to each worker’s individual savings, as he noted, «these savings belong to the worker».
The other half, the President said, will go to a collective and solidarity savings program that projects an immediate increase of UF 2.7 ($79 thousand today) for pensioned women over the age of 65 who have quoted 8 years. Also, Piñera said, it generates an immediate increase of 2 UF for pensioners over the age of 65 who have quoted at least 12 years.
In addition, Piñera argued that the reform incorporates severe dependency insurance and subsidy to support over 65s who require the help of a third party.
«We have had legitimate differences of opinion, but these differences should never prevent us from reaching an agreement,» he said.