The AFAPs are private companies that operate within the market under a free competition regime, controlled by the Central Bank of Uruguay (BCU) and under the regulations of Law 16,713, which establishes different requirements for them to operate. * To be a mandatory member, you must have a monthly income of more than $78,770, something that is never reported and causes many workers to have pensions of $14-$20, a real nonsense. The high commissions charged for administration, disability or death insurance also have a negative influence on the retirement amount. It is also inexplicable that the Central Bank of Uruguay charges another commission for Securities Custody, reports Crónicas del Este.
The Maldonado weekly indicates that the owners of REPUBLICA AFAP are: BROU 51%, BPS 37% and BSE 12% and its legal nature is a Public Limited Company without social representation or control by Parliament. It has a board of 3 people and a Trustee. General Management and 5 Managers plus Supervisors, their greatest operating expense is salaries; pays about 800 thousand dollars per month in salaries.
It manages the money of 582,417 workers and manages a volume of 9,650 million dollars. An impressive figure that perhaps reaches 18% of GDP.
On page 12 of the 2021 Annual Report and Balance document, it says: In turn, it is important to point out that AFAP investments have spilled over into various sectors of economic activity, although they have focused to a greater extent on infrastructure and sector projects. agricultural. It also says: AFAP investments in the productive sector have significant geographical and sectoral diversification.
what do you invest in
Public values.
In other words, the State, through the BPS, collects the contributions and, having the money in its possession, transfers the money to the AFAP.
Then the AFAPs “lend it” through the purchase of public debt securities and the State receives its own money, paying an interest rate to receive what is its own. This constitutes a portion of the Social Security deficit. *
HSBC Bank credit notes for 35 million dollars at 25 years. Road Corporation of Uruguay: 146 million dollars over 14 years.
PLATINIUM Trust: 3 towers in what is called Word Trace Center 165 million dollars over 30 years. Most of them destined for offices that are empty and that make up a highly speculative real estate market. Wouldn’t it be possible to build hospitals, schools, health centers that deal with suicide, mental health, and disability problems?
Oriental Real Estate Income: 58 million dollars, 14 years.
Maldonado 1: 58 million dollars to the Municipality of Maldonado for 14 years.
TATA Company: 106 million dollars over 20 years.
Coastal lands: 100 million dollars over 15 years
LA TAHONA INVESTMENTS: 40 million dollars over 10 years. The workers ask ourselves:
Why does the State get into debt and the government proposes a pension reform with the main argument of combating the deficit?
Where do we see the “spillover” of AFAP investments?
Where is the productive investment?
Why invest in neighborhoods and private enterprises?
Who decides where to invest the workers’ money?
For a SOLIDARITY, UNIVERSAL Social Security, WITHOUT AFAP and with BPS ADMINISTRATION.
*Sources: Annual Report and Balance for 2021 – RAFAP
**Cr. Luis Casares – Search – E. Consultores- CISS.
