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A second withdrawal of 10% casts a shadow over the currency and despite the fact that the ruling party has asked the Government for a signal to be able to explain to its voters why to reject a new anticipated intervention to the AFPs, the Executive, less than three days before That the commission is voted, it has not returned to deliver an alternative different from those that it has already put into play to prevent the project from moving forward.
La Moneda continues to carry the same script that was considered a failure during the first early withdrawal of pension funds and does not provide substantial answers to be able, at least, to align its own followers in the ruling party. Let us remember that the first vote caused a political earthquake inside Chile Vamos and that it had several aftershocks that even touched Sebastián Piñera’s political committee in that minute.
But let no one think that the Government does not want to let go of the hand in pension terms. As the Minister of the General Secretariat of Government (Segegob), Cristián Monckeberg, said this afternoon, for the Government “it is essential that we improve pensions and this is not just a phrase – he emphasized – because we have already been moving forward with a proposal that in his The first stage was approved and people who are receiving, or who were receiving lower pensions, have seen a significant improvement. Maybe it will always be insufficient but they have improved significantly. “
The Secretary of State specified that the government’s proposal is not just a reform around a higher contribution. Also, as he explained, “it seeks to move towards a universal basic pension and make profound changes in how the AFPs work today. Which eventually means greater collection in order to contribute to that universal basic pension to which we are aspiring and improving.”
Nothing new from the head of the Segegob who said that a second withdrawal of 10% “is not a good solution” because, in his words, the Government has made a “solid” response in support of families. “Insufficient, it will always be insufficient, because nothing replaces work,” he commented.
Regarding the discussion that is coming in the Chamber, Monckeberg said that it is evident “we are going to make an effort to find solutions with a powerful reform in the pension system that, moreover,” also includes withdrawals in exceptional situations.
“We hope that the opposition will relax its position because nothing is absolute and this reform is very different from the reform that began to be discussed two years ago,” the minister closed.
With a harsher tone, his peer from the Treasury, Ignacio Briones, recalled that the main social demand of October 18, 2019 was pensions and warned, in that sense, the damage that a new retirement could cause in the future pensions of the older adults.
“Today, not in 20 more years, today, and it seems that with the pandemic we have been forgotten, as we have shown, with data. Each withdrawal, each call for withdrawal of 10%, consumes a third of the reform of pensions, “explained Briones, noting that, in the extreme case that if there were three retirements,” the reform is over.
“What are we going to say to those older adults who are waiting for an improvement in their pension today. What explanation do we give them,” questioned the Finance Minister pointing out that “we have to think about the pensions of our older adults. it is now and it is a moment of dialogue “.
“Discussing, first with Chile Vamos,” he lashed out, “and secondly with the opposition because this cannot be achieved alone. A reform of this caliber requires agreements and that is the main call that I make.”
It is worth mentioning that after last Tuesday the Constitutional Commission of the Chamber of Deputies and Deputies approved the idea of legislating the project of the second withdrawal of 10% of the AFPs, this Wednesday, November 4, the expected motion will continue its legislative path.
The proposal contemplates a minimum withdrawal of 35 UF (around one million pesos) and a maximum of 150 UF (4 million pesos approximately), which would be paid in a single installment after 30 business days of the request.
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