translated from Spanish: Treasury after Short Pension Law: “If a fourth withdrawal is made, the part of the self-financed pension will decrease”

In a dialogue with Radio Cooperativa, Finance Minister Rodrigo Cerda addressed the Short Pension Law that the government sent to Congress with immediate discussion.” There is a whole middle class without help from the State in terms of pensioners with the solidarity pillar and we seek to extend it to it,” said Cerda, about the initiative that, among other provisions, extends the coverage of this instrument from 60% to 80% of pensioners. The initiative was sent in full discussion of the fourth withdrawal of funds, and the Minister of Finance stated that “if a fourth withdrawal is made, the part of the pension that is self-financed will decrease. On the one hand we will be trying to improve pensions with state aid and on the other hand we will greatly reduce their self-financed pension.” We are raising pensions permanently, and we need permanent funding to make it sustainable. And we are trying to reduce tax exemptions, and it seems to us that it is a matter of tax justice, to flatten the field,” Cerda said. The head of the Treasury also made a mea culpa for the pension reform law that did not advance in Congress and maintained that “we have not thrown the sponge in pension matters, because the most relevant thing for Chileans is that they increase their pensions.”

Original source in Spanish