"This is not a retirement system, it's an industry"

Not at all happy Andras Uthoff, economist and former member of the Advisory Council for Pension Reform, known as Comisio Bravo, with the pension reform proposal presented by President Sebastin Piera.

According to the pension expert, the project only supports the fund of the Chilean pension problem, which pays insufficient pensions to meet the needs of the population and only deepens the current affairs of the AFP.

"From the moment President Piera declared that the system rested on two pillars I lost all hope, a market of compulsory savings and a pillar of solidarity. , all ads were aimed at better regulating the savings intermediation sector, subsidizing demand and diversifying supply.This is not a pension system, but of an industry ", he summarizes.

In charge of emergencies and priorities that the system needs to improve, Uthoff says the reform "mentions low pensions, low contribution density, low contribution rates, the need to raise the age of retirement, who in any system are recurring problems, "he adds," he omits the lack of legitimacy of the system and the lack of a true pillar of solidarity that establishes minimum and basic pensions to reflect the diversity of situations, the survival of the citizen and her right to a dignified retirement. "

According to the expert, the main problems missing in this announcement concerned the lack of legitimacy of the system, "with greater participation of workers in its management", the lack of "recognition of work and unpaid roles in society, as well as the limitations that entrepreneurs, SMEs and workers in formalities must survive and respect the obligations of the system. "According to Uthoff, it is" necessary to build a multipolar system that takes into account the above. "

In particular, on the proposition that the additional 4% of the quotation may be managed by entities other than AFP Uthoff indicates that this only points to greater retirement savings ", but in individual accounts, creating greater confusion among the working poor who no longer have to decide only the contribution of the PFA and the fund, but what to do with the additional 4% provided by the employer. to provide for new commissions and abuses where the worker must act with a total asymmetry of information. In short, a lot of work at the expense of the workers, "he says.

The working poor must not only decide which AFP to contribute and in what fund, but what to do with a supplement of 4% which gives the employer.A confusion to be expected for new commissions and abuses in which the worker must act with a total asymmetry of information. "Absence of problems Omit the lack of legitimacy of the system and the l & # 39; lack of a true pillar of solidarity that establishes minimum and basic pensions taking into account the diversity "More similar things." All ads aimed to better regulate the industry's intermediation Saving by subsidizing demand and diversifying the supply. "

the lack of legitimacy of the system and the lack of a true pillar of solidarity that establishes minimum and basic pensions to account for the diversity of situations in which the citizen survives. "