The Latin American Center for Economic and Social Policies of the Catholic University (Clapes UC), convened a panel of experts at the beginning of the year, led by the former Minister of Finance, Felipe Larraín, to analyze the central pillars of the government’s pension reform project, to propose changes that have now seen the light of day in a report with nine proposals (here are five of them):

1. That the reform should be presented as an amendment to Decree Law 3,500, and not as its repeal (the decree enables the creation of a social security system based on individual funding)
2. Maintain current PGU coverage and increase it up to the poverty line ($220.301 for single person households)
3. Rule out the possibility of self-loans
4. Allocate 4.2% of the additional contribution to individual accounts and 1.8% for redistributive purposes
5. Possibility of choosing fund managers. “The proposal is about how to improve the government’s bill of law, so that it does not lead to immobility but to a better system, which can always be improved in the future,” said Larraín.

To review the full document, click here.