Chile’s President Bachelet Presents Bill to Boost Pensions
Chilean President Michelle Bachelet announced on Wednesday evening that she was sending to Congress a bill that would dramatically increase the size of public pensions in the face of growing opposition to the nation’s current system.
The bill would include an increase in the amount of savings held collectively, a new 5 percent payroll tax, and a corresponding boost in retirement savings. Current pensioners would see savings rise by around 20 percent, while workers currently paying into the system would see increases of up to 50
percent.
“We must advance toward a truly mixed social security system, where all play their part, where solidarity comes from personal effort, where the state and employers play their corresponding role,” Bachelet said in a speech.
Chile’s privatized pension plan was started in the 1980s during the dictatorship of Augusto Pinochet, and the so-called ‘Chilean model’ has been copied and adopted worldwide.
But opposition to it is rising in Chile, with regular street protests demanding changes. Opponents say the payouts are meager, and they complain the pensions are managed by for-profit funds.
Full Content: Voa News
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