translated from Spanish: Piñera finally shows his letters in planned reform: announces expansion of the Solidarity Pillar but does not give in with the extra 3% to the individual accounts

The approval in the Senate Working Committee of the idea of legislating the draft planned reform upset all the government’s plans. This, because while it was an issue that President Sebastián Piñera himself called for urgency in an interview last Monday, the session of this day imposed opposition by 3 votes to 2 and left the full additional 6% contribution to a solidarity fund, when the Government sought it to be 3% for the individual contribution and the other 3% for the fund in question.
In La Moneda they had a press point scheduled for this afternoon after the vote, but this change in the project canceled the event and modified it by a national network for this same Wednesday, where President Piñera announced a series of indications to the planned reform that is in Congress.
In the national chain, it announced the expansion of Solidarity Pillar coverage from 60% to 80% of the population. According to Piñera, this measure will benefit 480 thousand new middle-class pensioners, who have no state support and only depend on their individual savings.
Thus, “this strengthened Solidarity Pillar will protect and benefit more than two million pensioners from 80% of the most vulnerable households.”
He also said he will urgently bring about the planned reform in the Senate, pending discussion. Here he ratified the Government’s position of 6% separated into two groups of 3%, deglighting itself from what was approved in the Committee on Labour.
In that line, he sent a message to the opposition, but without mentioning them directly: “We know that we have had legitimate differences of opinion regarding this reform. But these differences can never, but never, prevent us from reaching an agreement. And soon, let us improve the pensions of more than 2.1 million people now and significantly.”
“We all know that this reform is urgent and necessary. The vast majority of Chileans tell us that they want their planned savings respected and protected, but they also want greater solidarity. These demands are collected by this reform,” the Representative added.
“This reform guarantees all new pensioners with 30 years of contribution and at least 10 years of contribution in the new program, a pension equal to or greater than the current minimum wage,” Piñera said.
Top announcements

Solidarity pillar will go from 60% to 80% of retirees.
It increases basic solidarity pension so that no pensioner is on the line of poverty.
Increases quote by 6%: 3% on individual account and 3% to a collective and solidarity fund.
New regulations to AFPs and the participation of non-profit admins or cooperatives.
That AFPs can distribute profits to their affiliates and offer differentiated commissions.
Increased participation of the Pension System Users Commission in the appointment of directors in the companies where the planned funds are invested and the creation of Affiliate Committees in each AFP.
Strengthening the tendering mechanisms for new entrane flows into the pension system.
AFPs with negative profitability and lower than that of a reference portfolio, return up to 20% of the commissions charged to its users.

Original source in Spanish