October 2018

30Oct

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. Read also Chile. Piñera...

October 30, 2018
News, Slider,
Read more...

July 2018

25Jul

The Role Of The Chilean CCR In Private Equity

The Chilean pension fund system has breached in 2018 the 200bn threshold. Its pension fund system – Administradoras de Fondos de Pensiones – traditionally already very open to investment overseas, has now the potential to increase exponentially the exposure to overseas alternative investments. A recent reform affecting the pension system allows in fact Chilean pension funds now to directly invest as well as co-invest in foreign private equity funds. The Chilean pension regulator - Superintendencia de Pensiones - issued in November 2017 a regulation...

July 25, 2018
Articles, Investing, Regulation, , ,
Read more...
25Jul

Chile’s Pension Risk Rating Commission Approves Sale of Additional First Trust ETF

First Trust Advisors L.P. (“First Trust”), a global ETF provider and asset manager, announced that Chilean pension funds investment risk rating commission, La Comisión Clasificadora de Riesgo (CCR), has approved an additional First Trust exchange-traded fund (ETF) for sale to Chilean pension funds, known as la Asociación de Administradoras de Fondos de Pensiones (AFPs). According to Chile’s pension plan investment guidelines, before an ETF can be purchased in a pension fund, it must be approved by the CCR. “More diverse...

July 25, 2018
News, Slider
Read more...

June 2018

16Jun

The Effects of Means-Tested, Noncontributory Pensions on Poverty and Well-Being: Evidence from the Chilean Pension Reforms

By Italo Garcia (RAND Corporation) & Andres Otero (Independent) Chile initiated in 1981 a privately managed, individual-account pension system that inspired similar reforms in many Latin American countries, and that has been considered as a possible model for Social Security in the United States. After 30 years in place, the Chilean pension system has been criticized for replicating existing inequalities in labor markets and increasing the risk of old-age poverty; for achieving lower levels of coverage; and for providing low...

June 16, 2018
Articles, Pension design, Regulation, , , , ,
Read more...

December 2017

29Dec

Chile pension watchdog approves risk-based supervision model

Chile's pension watchdog SP has approved via a resolution changes to its risk-based supervision framework for private pension fund managers (AFPs) and unemployment insurance administrator AFC. The changes had been put out to public consultation in November. Comments from seven entities were received, according to SP. Coming into force on May 1 next year, the changes follow the enactment of a new law last year which grants SP specific powers regarding risk analysis and supervision of risk management. Under the legislation, SP is authorized...

December 29, 2017
News, Slider
Read more...

November 2017

17Nov

Factbox: Where Chile’s top presidential candidates stand on reforms

Conservative frontrunner Sebastian Pinera and center-left Alejandro Guillier lead a crowded field of candidates in Chile’s presidential election on Sunday, widely seen as a referendum on the reforms of outgoing President Michelle Bachelet. The following are the main policies supported by Pinera and Guillier: SEBASTIAN PINERA - A billionaire businessman who served as president from 2010 to 2014, Pinera has promised to make Chile the first country in Latin America to achieve “developed nation” status in the Organization for Economic Cooperation and...

November 17, 2017
News, Slider
Read more...

October 2017

25Oct

Pensiones a la chilena

por Andrés Solimano Hasta hace poco el tema de las pensiones en Chile pertenecía al ámbito del pequeño grupo que define las políticas públicas en nuestro país, dominado por economistas y sujeto a la fuerte influencia del poderoso gremio de las AFP (Administradoras de Fondos de Pensiones). Sin embargo, desde 2016 el tema pasó de las elites a las masas y se tomó las calles. Consiguió generar un debate nacional y puso en agenda prioritaria el desafío de diseñar un...

October 25, 2017
Books, Regulation, Savings, Supervision, , , ,
Read more...

April 2017

14Apr

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...

April 14, 2017
News
Read more...

March 2017

27Mar

Chile pensions protest draws tens of thousands

Tens of thousands of people in Chile have taken part in demonstrations against the country's controversial privatised pension system. Demonstrators called on the socialist government of Michelle Bachelet to scrap the the system, which is managed by private funds. Critics say the system benefits the rich but leaves poorer Chileans with a pension below the minimum wage. The system was introduced in 1981 under General Augusto Pinochet's rule. Protest organisers said a total of more than 2 million people had joined marches in...

March 27, 2017
News
Read more...