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The Government faces two sources that complicate the new proposals that it wants to enter, through indications, to the pension reform that is being processed in the Senate, where it has remained stagnant since its approval in late January in the lower house.
Last week it was known that among the initiatives that the Executive manages are longevity insurance, the possibility of withdrawing money from the AFPs for the terminally ill and even a self-loan for housing.
But eventual advance of the second withdrawal of 10 percent of pension savings and the strength that the idea promoted by deputy Pamela Jiles is gaining complicate the Government’s intentions, and even the Minister of Finance, Ignacio Briones, has warned that a reform will not be possible if that measure is approved.
“If a second withdrawal is made, there will be 4 million people who will be left without funds, and that makes it very difficult for there to be a pension reform later, which is what the Chileans are really asking of us “, questioned the minister spokesman today, Jaime Bellolio.
Meanwhile, there is lack of internal understanding between the Executive and Chile Let’s go on the technically and politically viable formula to distribute the additional 6 percent contribution: the ruling party now aims for everything to go to individual savings, while the proposal currently being processed fixes half to personal accounts and the other to a solidarity fund .
According to government sources, this situation has delayed entering the indications; but they say the delay cannot continue and should be presented next week.
Also, Bellolio, urged that “the sooner we approve a reform that allows current pensioners to have their pension increased, also to those who are about to retire. The Government has a long time ago a project that we hope the opposition will approve once and for all for the good of the country. “
ON THE RIGHT “THEY ARE IMPROVISING”
Statements that caused surprise in the opposition, because in the absence of the indications committed by the Executive, the reform has once again been put on the table of the Labor Commission to advance in the processing with or without the new proposals.
He Senator Juan Pablo Letelier (PS), president of the instance, questioned that “It has become clear that in the matter of pensions the Government does not know what it wants, it cannot agree with its parliamentarians, they are improvising.
On the other hand, “the opposition has been clear, we want a new pension model, in which, on the one hand, a solid pillar of social security is created for the system, and on the other, abuses by the AFPs are ended. However, the right wing and Piñerismo, as they appear, are too committed to the current pension model and to the AFPs. It would be good for them to speak out once and for all. “
Beyond the mechanisms that will propose the indications, the Government intends to establish a universal basic pension that approaches the minimum wage.