The Government of the President Gabriel Boric, presented this Monday a project that ensures the non-expropriation of each person’s pension savings. The presentation of the initiative takes place within the framework of the vote in the Chamber of Deputies and Deputies on two projects of the fifth withdrawal: one presented by parliamentarians -of “free disposition”- and another by the Executive -of a limited nature-.
The Minister of the General Secretariat of the Presidency (Segpres), George Jacksonconfirmed yesterday the presentation of the project.
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“This reform guarantees that all savings for individual capitalization that is both now and later, that money must be the exclusive property of the worker and that it cannot be expropriated,” Jackson told the National State of TVN.
“The action that the Executive is taking is not innocuous because it manifests and expresses a will that at least we, in our administration, have no interest in the individual capitalization pension funds of the workers ceasing to be their property. , because they continue and will continue to be,” he added.
Constitutional reform
The document presented indicates that it seeks to “take charge of the existing concern about the funds saved today by the workers in their individual capitalization accounts in the face of a future pension reform.”
In addition, it emphasizes that “this government has an absolute commitment to respect the property of the pension funds saved in the accounts of the workers.”
The reform proposed by the Government seeks to add two new paragraphs to Article 19 No. 18 of the Constitution:
- “Social security benefits will be financed with tax contributions and mandatory contributions, in the form and conditions established by law. The funds originating from mandatory contributions must be used solely and exclusively for pension purposes.”
- “For these purposes, the administration of funds and the payment of alimony will also be understood within the pension purposes, in the manner determined by law. Without prejudice to the components of social security that make up the system, it will be guaranteed always the property of the affiliate with respect to the savings from individual capitalization, without the law being able to expropriate said savings.
