Chile’s Pinera presents pension reform plan in bid to boost payouts
Chilean President Sebastian Pinera presented a plan on Sunday to reform the country´s ailing pension system in an effort to boost payouts seen by many as insufficient in one of Latin America´s most stable economies.
Pinera said in a televised evening address that he would ask employers to pick up the tab for an additional 4 percent contribution to each of their workers´ pension funds, to be phased in and managed by an administrator of the employee´s choosing.
He said the government also would boost its contribution to a collective fund to 1.12 percent of gross domestic product from 0.8 percent, while kicking in additional funds for the middle class, women and those who delay retirement.
Pinera, a conservative billionaire who first served as Chile’s president from 2010 to 2014, said the plan would carry an overall price tag of $3.5 billion.
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