Second 10 percent recall passed its first hurdle in the House

10/27/2020 Chile



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The Constitutional Commission of the Lower House approved this Tuesday, with a large majority, the reform that proposes a second withdrawal of 10 percent of pension savings and was dispatched to the Chamber.

The initiative, raised by the opposition and promoted mainly by Pamela Jiles (PH), was approved with 11 votes in favor and 1 vote against. The legislator who rejected the proposal was Jorge Alessandri (UDI).

The project aims to give Chilean families economic comfort to face the crisis generated by the pandemic, which has led to a growth in unemployment and debts as a result of sanitary restrictions.

This second fixed reform the same conditions as the first, in the form of direct and one-time income to contributors of 10 percent of their savings, managed by the Pension Fund Administrators (AFP).

In session also generally approved retirement annuity retirement (10 votes in favor and two abstentions) and the forced withdrawal for alimony debtors (12 votes in favor).

As with the first project to withdraw funds approved in July, the Government took a position against this second initiative, alluding to the fact that it would end up harming the pension system.

The Minister of Finance, Ignacio Briones, reiterated this morning in Cooperative what it is “incompatible to go for an improvement to pensions and at the same time take measures that weaken them”, exemplifying that each retirement process “subtracts two contribution points”, which is one third of what is proposed in the pension reform (6 percent additional contribution).

In his later intervention before the Commission, Briones stated that approving this proposal represents a permanent expense for the Treasury, which has so far disbursed seven billion dollars to face the effects of the pandemic.

Likewise, he summoned Parliament, because “you made an honorable commitment to make a one-time retreat, and here we are“.

The Minister of Labor also presented to the instance, Maria Jose Zaldivar, who admitted that, if the bill is promulgated, it would meet “needs that are very urgent”, while reiterating that they would be used “resources that are intended to be used for a future pension, and we are putting future retirements at risk. “

In addition, he argued that a common reasoning to support retirement is: “‘Why am I going to continue saving if my pension is going to be equally bad, and I am going to have to resort to the resources of the Solidarity Pillar?'”, Answering that “” Faced with this argument, what they have to consider is that what we are looking for is to strengthen the pension system through an increase in the contribution rate“.

Among other things, the Secretary of State also recalled that the country’s situation today is different from when the first initiative was approved in July, since around 400,000 people have already returned to work, and that would not be an effective measure since many citizens were left without funds after the first one.

JILES CONTRA BRIONES: “I HAVE CHATA, THE LEVEL OF CRUELTY AMAZES ME”

In her speech prior to the vote, the deputy Pamela jiles, promoter of the initiative, harshly criticized the position of the Minister of Finance: “Mr. Briones has me rotten, he has me flat. The level of cruelty, callousness and provocation To pain of the people who are massively following this procedure, their level of ridicule amazes me, “he lashed out.

Along the same lines, the deputy René Saffirio (Ind.), Another promoter of the project, assured that “the Minister of Finance turned over everything he had credibility deposited in his checking account when he warned the country that the withdrawal of the first 10 percent was going to mean an economic catastrophe, and look what happened: the Minister of Economy denied it. “

After these interpellations, the head of the Treasury reacted with annoyance and made it known to the president of the Commission, Matias Walker (DC), during the session: “Whenever I come to Congress, I do so with great expectation and enthusiasm, because I genuinely hope that Congress will be a place for dialogue, debate, and different positions. That is always my desire and it implies a lot of respect. . I think The forms must always be taken care of, at all times, and I see with concern that in this Commission all kinds of qualifying adjectives are raised from the people, which is nothing other than treating the person in charge in an unworthy way“Briones said.

“There is nothing more unworthy in conversation than arguments Currant, which are personal disqualifications. In fact, it is not an argument, it is the worst argument, “he added.



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