Differences between the AFP and FFAA systems that motivate the announcement of Piñera on military careers



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While the points of pension reform presented by the government are still under discussion, President Piñera yesterday mentioned another novelty in which work slightly affecting the armed forces is underway.

According to the President, a bill to extend the military career from 30 to 35 years and thereby ease the public finances of the armed forces is under study.

"Today Today, the state contributes more to the forecasts of the armed forces than to the Pilar Solidario and we seek to balance this situation" said President.

Something that is not far from reality. In this year's budget, public spending on Capredena (Army, Navy and Air Force) and Dipreca (Carabineros and PDI) was disbursed by nearly $ 2,530 million, Remaining pension systems amount to about US $ 2,294 million of the population.

It should be recalled that the forecast of armed forces and order is the distribution, while the rest of the population is governed by the system of individual capitalization.

Already in 2015, the Bravo Commission recommended putting an end to this reality. In his report, he points out that "the ILO considers that" equal treatment is a guiding principle of social security ", but that" this principle of uniformity of pension rights received by the population is not currently respected in the country .. the existence of differentiated retirement systems. "

The report of this entity convened by Michelle Bachelet to her second period also highlights that the armed forces do not Did not adhere to the 1981 reform when creating the AFP, so that currently maintain their old defined benefit plans with more generous law and pension terms largely subsidized by l & # 39; 39; State. "In fact, a pension in Capredena may even exceed $ 1.8 million, while a civilian retiree collects an average of nearly $ 203,000.

This is for this reason that it is suggested that "the two special schemes (Capredena and Dipreca) should be integrated into the general system of individual accounts and eliminate or reduce the tax subsidies granted. "

Appropriate Measure

According to Jaime Abedrapo, Faculty of Law and University Government U. San Sebastián, Pension System of the Armed Forces " responds to several reasons, the main one perhaps being that his responsibilities are different from those of any other professional activity " but it recognizes that it is expensive.

In this sense, for Tomás Flores, University of the American mayor, the measure announced by the government" is on the right track and is studied for some time already. "

Economist points out that" obviously, is retiring A 55-year-old officer was probably reasonable several decades ago but today we have a perfectly fit person able to continue serving and working for at least a decade .

A synergy between the two systems? Abedrapo believes that it is difficult to mix them, but believes that the military model should "be adapted to the reality of the private system, while respecting a certain degree of differentiation because the national defense function is very special "

  Infographics on Pensions Source: Superintendence of Pensions, Ciedess, Dipres / Maximialiano Jorquera

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