FIAP’s President, Guillermo Arthur, and the Vice-Presidents Santiago Montenegro (ASOFONDOS, Colombia), Angel Martinez-Aldama (INVERCO, Spain), Carlos Noriega (AMAFORE, Mexico) and Giovanna Priale (AAFP, Peru) were reelected in the Federation’s 21st General Meeting, held in Mexico City last November 1.

After analyzing the situation facing pension systems worldwide, the General Meeting declared:

1. That the individually funded pension systems are the only financially sustainable mechanisms that can improve the pensions of workers while contributing to the economic development of countries.
2. That the PAYGO systems that still exist in some countries are not sustainable, for demographic reasons, as evidenced by the parametric changes they have had to introduce and those that are still in the process of implementation, as well as the levels of public indebtedness, whether implicit or explicit, they have produced and continue to increase in those countries.
3. That notwithstanding the sustainability of the individually funded systems, they face the major challenge of population aging and having to finance a growing number of pensioners, for ever-longer periods of time.
4. In order to meet this challenge, it is urgent to increase contribution rates and the retirement age, in order to adjust them to the aforementioned demographic changes that have occurred since the creation of these systems.
5. At the same time, it is urgent to improve the levels of savings through regulations that more efficiently promote the diversification of investments and voluntary pension savings.
6. That given the high levels of informality in member countries, it is also urgent to strengthen they first, non-contributory and efficient solidarity pillar that can improve the pensions of the most vulnerable workers with no savings capacity. Informal workers who are able to pay, in turn, must be encouraged to save by means of innovative mechanisms of the matching contributions type, or others.
7. Finally, we believe that with the aforementioned changes, the individually funded system could provide effective protection to workers, improve the levels of savings in the country, and contribute to its development.