“If there is no (pension) reform here, the AFPs will be the main ones responsible,” warned the Minister of Labor and Social Security, Jeannette Jara, when addressing the difficulties in advancing the aforementioned reform of the pension system.
In an interview published this Sunday by the newspaper El País, the Secretary of State regretted that “those of us who are in politics have not been able to reach an agreement (on this reform) and we have gone through different political cycles with positions that vary depending on whether we are in the ruling party or in the opposition. And the pension systems are social pacts of greater scope. We have lacked a more generous vision.”
Another point that has complicated the search for agreements – Jara said – is the “economic interest”, given that “the AFPs have protected their business from being touched so that it continues to generate the juicy profits they have had during all this time, for which they have taken a series of actions, such as installing various fake news or actively misinforming the population.”
“This has ultimately generated certain unfounded fears that make it more difficult for changes to take place,” said the head of the Labor portfolio.
One of the issues that has generated the greatest differences is the destination of the 6% additional contribution, which is why he questioned the possibility of reaching an agreement on this issue: “At this point, I think I would have to have a magic ball to answer that question,” he said.
“Instead of being more flexible, the opposition has become increasingly rigid in its stance on this issue. Even leaving behind what President Sebastián Piñera proposed. I cannot predict what will happen with the distribution of the percentage,” said the communist activist, who nevertheless pointed out that “what I might say with certainty is that if there is no distribution or social security, the pensions of the current one and a half million retirees will remain as they are. And that is politically irresponsible.”
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