On national television, the President of the Republic, Gabriel Boric, presented his government’s pension reform project. Emphatic, the head of state assured that “the AFPs, in this reform, are finished.”
The President assured that “the current pension system is in crisis”, and that “in recent years there has been a long debate about the AFPs. Chileans are tired of the abusive commissions and the losses generated by the current system” .
“The AFPs, in this reform, are finished. There will be new private investment managers with the exclusive purpose of investing in pension funds and, in addition, there will be a public alternative, which will allow promoting competition with the entry of new actors,” he said. .
Along the same lines, he pointed out that the reform “will strengthen the freedom of choice of affiliates, you will be the owners of your savings and you will be able to decide freely between the managers of private investors or the public investor.”
In more detail, the President reported that this project “separates the attention service for affiliates, collection, bills, collections and payment, which will be in charge of an Autonomous Pension Administrator (APA), an entity of public, modern and efficient”.
“This will make it possible to lower the amount of commissions and put an end, once and for all, to the phantom commissions that the AFPs charge today, thus advancing towards a transparent and cheaper system for affiliates,” he added.
At the end of his speech, the head of state invited “all the actors in this discussion, parliamentarians, businessmen, the AFPs, the workers, the organizations, to fuel a debate that puts people at the center and their needs.”
“We hope that all political sectors are up to the task. I hope that, just as in the past we have seen division, today we will be able to build a consensus that benefits all Chileans and Chileans, we will see unity, empathy, a sense of justice and love for Chile”, he concluded.
