“What reform are you going to do if there are no funds?” said Minister Alex Contreras. Executive will present this month its strategy to renew the pension model.
The head of the Ministry of Economy and Finance (MEF), Alex Contrerasurged Congress to put an end to any initiative that authorizes a new withdrawal of funds from the AFPs, since it jeopardizes the inexorable reform of the pension system.
Contreras Miranda acknowledged that due to the pandemic, the release of contributions from individual AFP accounts was understandable, but now we are in a different context, in which —in the long term— pensions would lose strength.
“The more retirement there is, the size of the funds will continue to decrease and that will have a cost in the long term. In the pensions that there will not be, it will affect the reform. What reform are you going to do if you already there are no funds?” he told the press.
In his opinion, the debate on a new withdrawal from the AFPs should be postponed. Once you have the restructured pension system, aim at structural policies that help citizens.
The Executive Branch will present its reform proposal this month and it will be up to Congress to give it the go-ahead.
Source: Larepublica
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