After 26 years of service, the pension fund administrators (AFP) Previsión BBVA and Futuro de Bolivia ended their activity in the country on Friday.
Thus, this Monday, May 15, the Public Manager of the Long-Term Social Security of Bolivia assumed full control of AFP operations. From now on, this entity will be in charge of all the insured and retirees of the pension system, in compliance with Supreme Decree 4585.
After this migration, it will not be necessary for the insured and retirees to carry out additional procedures, since the process of migrating information from the AFPs to the Manager has practically finished, as explained by the Bolivian Information Agency. In addition, the entry into force of the Manager, there will be a direct increase in the pensions of each person.
The Government tries to convince contributors that this change will benefit them and ensures that, in the case of retirees, they will no longer have to pay the 1.31% commission that was previously paid to the AFPs. “Instead, these resources will be used directly to improve their income,” they indicate.
The institution will also be in charge of managing investment capital after the exit of the AFPs. This entity was created on January 14, 2015, by virtue of Law 065, of December 2010. One of its first objectives was the payment of Dignity Income.
Starting in June, the Manager will pay benefits and benefits to holders and beneficiaries who were receiving pensions in the process of being paid at the AFPs under these modalities: over-the-counter payment, home payment and payment by credit account.
With information from Bloomberg Line.
Source: Larepublica
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