Minister of Labor Jeannette Jara Discusses Pension Reform Project in Senate: Government Hopes for May Vote

In conversation with the T13 Central Table program, The Minister of Labor and Social Security, Jeannette Jara, commented this Sunday on the pension reform project that is being discussed in the Senate and that The Government hopes it will be voted on in May.

In this regard, the Secretary of State said “we agree with the opposition on an itinerary where pension reform issues are not relevant to this ping pong table about how the 6% (contribution to more) distributed, but instead. They need to look at the problems you want to address. For example, improving the amount of pension savings, the tax limit, gap insurance, the profitability of pension funds and generation funds,” said Jara.

In particular, Minister Jara raised the proposal with partial solidarity about the creation of social insurance to increase the number of pensioners. “The pension proposal focuses on the benefits that the reform wants to promote and today, as we are on Mother’s Day, I want to say that. “Social security in Chile is essential to improve women’s pensions.”he said.

Regarding the distribution percentages of the extra grant, the Labor leader said “The discussion is focused on other ways that will allow us to achieve these goals.”

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Minister Jara also referred to the debate on the way to increase current pensions.

“Pensions are now where we have the problem with the opposition, because when we propose 3%-3% and the opposition proposes 3% for individual capitalization, and it is like saying that we agree on half the problem,” he explained.

According to Jara, one and a half million people would benefit from the scheme proposed by the Government, based on the years of grants.

“When the Universal Guaranteed Pension (PGU) was created, the new levels of the low-income sectors were significantly improved. But for the middle sectors there is still a need to recognize the effort they made by contributing. Therefore, This is an important problem that needs to be solved, because today it happens that there is not much difference in the amount of pension between a person who contributed and another person who did not.which is unusual,” he said.

In that sense, The minister confirmed that with the Government’s proposal “people will have insurance, that 3% will be directly in their account and another 3% according to the years of the contributions, which will be 0.1% per year if we can agree.” on that formula.”