Valds warns of political difficulties for AFP to handle an additional quote

A tone less severe than that introduced by yesterday's tax reform by former Finance Minister Rodrigo Valds, about the government's proposed pension reform bill.

Valds, who participated in a seminar on pensions organized by the government. UC Government Schools, AFP Cuprum and AmChamChile, took part in their comments and said the current draft included aspects of the reform presented by Michelle Bachelet's previous administration. "It's a good opening, as far as the government has solved problems that were still quite out of the pension debate," Valds said. And he added, "There are many things in the project that surprise me positively."

However, the economist mentioned that a better alternative should be found for the administration of the additional 4% quota proposed by the project. "I have a lot of doubts about the fact that the proposed solution is the most appropriate: First, for a simple political reason, it is very difficult for him to settle down and they are already discussing the issue of double committees ", did he declare. The government proposes that the administration of the new contribution remains in the hands of the AFP and other entities, which should create a subsidiary with a unique turnaround and a regime of 39 Investment more flexible than the one currently applied by the directors. In addition, by default, AFPs can manage the new contribution, without creating a new subsidiary, but in a separate accounting of the already valid contribution of 10%.

At this level, he admitted that he seriously doubted the existence of several administrators in the country. the new system and the question that the executive "explained psimo that in 4% there will be competition and 10% will not be."

In key politics, Valds expressed his doubts about improving pensions either with more AFP and no less AFP. "If the extra 4% went to the same portfolio, or to a similar portfolio, I do not see a significant economic impact, I seriously doubt that it's not better to place the eggs in different baskets, in terms of The logic of this portfolio (…) Let's face it, 4% to AFP is politically a fire in Chile, "he said.

He also warned about the signal given with the $ 3,500 million tax contribution provided by the project. : "The government has opened the floodgates of solving the problem with the taxpayers' money, which, at least when I am minister, I avoid at all costs, I am very afraid of this solution, it will be a constant stress for the whole process; in fact, ask and separate the Pilar Solidario is related to this, it is like saying that we pay the money and that we speak then "

In the same seminar, the Undersecretary of Social Security, Mara Jos Zaldvar, defended that the reform s considers more competition in the administration of 10%. "What is allowed is that the 10% of new players also incorporate new actors, whether it's for-profit entities or goal-oriented organizations." not for profit, which are allowed to be, for example, compensation funds that make up these new entities, "he said. . Such entities should be formed into new AFPs.

insufficient
Valds estimates that the debate on the reform will end with an increase of 5 points and not of four.