In this webinar the main aspects of the so-called “re-reform” carried out in Argentina were discussed, which implied the confiscation of the individual accounts of the affiliates for more than USD 31,000 million.

It is concluded that the real reasons for the confiscation were political and also the government’s need for greater financial resources. It was carried out despite the fact that workers preferred the individually funded system through their affiliation decisions.

Post-nationalization experience shows that the system’s pensions and replacement rates have not improved and that there is high uncertainty regarding the ability to pay the future pensions of workers. This is due to the lack of financial sustainability of the system, the depletion of the Sustainability Guarantee Fund (FGS), and the fact that the situation will worsen over time due to the demographic trends affecting the PAYGO systems. All these problems have led the Argentine pension system to perform very poorly in international ratings.

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