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FIAP > FIAP Newsletter > FIAP Declaration: The withdrawal of Social Security funds for purposes other than the funding of pensions, puts the workers and pensioners of the region at serious risk
30 May, 2016

FIAP Declaration: The withdrawal of Social Security funds for purposes other than the funding of pensions, puts the workers and pensioners of the region at serious risk

The International Federation of Pension Fund Administrators (FIAP), always respectful of the sovereignty and public policies in each country, wishes to express its concern for the risks involved in modifying the use of the pension funds saved by workers in their individual accounts, for purposes other than the funding of their pensions.

In particular, FIAP wishes to highlight the following:

The withdrawal of Social Security funds for purposes other than the funding of pensions defeats the purpose of the system, could generate a contagious effect in the region and introduce perverse incentives. Measures of this kind do not solve the problem of pensions, but rather aggravate it and move the problem into the future.

The individually funded pension systems were created to ensure a regular flow of income when enrolled members stop working. Any use for any another purpose, or before retirement age, reduces or eliminates the pension and the peace of mind members deserve when they retire.

Agreement of the 20th FIAP Assembly in Panama

FIAP Newsletter: No.18

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FIAP > FIAP Newsletter > FIAP Declaration: The withdrawal of Social Security funds for purposes other than the funding of pensions, puts the workers and pensioners of the region at serious risk
30 May, 2016

FIAP Declaration: The withdrawal of Social Security funds for purposes other than the funding of pensions, puts the workers and pensioners of the region at serious risk

The International Federation of Pension Fund Administrators (FIAP), always respectful of the sovereignty and public policies in each country, wishes to express its concern for the risks involved in modifying the use of the pension funds saved by workers in their individual accounts, for purposes other than the funding of their pensions.

In particular, FIAP wishes to highlight the following:

The withdrawal of Social Security funds for purposes other than the funding of pensions defeats the purpose of the system, could generate a contagious effect in the region and introduce perverse incentives. Measures of this kind do not solve the problem of pensions, but rather aggravate it and move the problem into the future.

The individually funded pension systems were created to ensure a regular flow of income when enrolled members stop working. Any use for any another purpose, or before retirement age, reduces or eliminates the pension and the peace of mind members deserve when they retire.

Agreement of the 20th FIAP Assembly in Panama

FIAP Newsletter: No.18