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The Senate Labor Committee resumed the discussion of the government’s pension reform, which was negotiated for almost a year in the Chamber and is close to completing two years of processing.
The central axis of this project is to increase the contribution from 10 to 16% charged to the employer, and the great agreement was for the distribution of that extra component, in equal parts to solidarity and individual savings.
Instead, what the opposition proposes is to allocate that 6% completely to finance a universal basic pension, with criteria to stimulate the personal contribution of each worker, in addition to other aspects regarding the role of the AFPs and the system in general.
The Government made its position transparent on this matter, agreeing that solidarity and a long-term perspective are required. However, the Minister of Finance, Ignacio Briones, warned that this component could discourage formal jobs and contributions.
The opposition’s argument was largely supported by Paula Benavides, an economist and advisor to the bloc on pension matters, who acknowledged that the criteria to encourage the listing may be neglected in the conglomerate’s proposal, but it is something that can be complemented, a a solidarity pillar of social security has been resolved.
Among the legislators, the senator and president of the UDI, Jacqueline van Rysselberghe, defended the position they have presented in the unionism, regarding that 6% must go entirely to individual savings, and the solidarity component must be paid by the State .
The DC senator, Carolina Goic, accused an ideological vision of solidarity that, she said, is considered differently depending on the context. For example, she alluded to what has been the use of Unemployment Insurance, through the Employment Protection Law.
The commission is expected to resume the debate next week, although both parties agreed on some areas to improve: an increase in pensions for the middle class, closing gender gaps, a differentiated investment system for the social security pillar and endow the new institutional framework with a technical character.
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