4 February, 2025
On January 23, the Executive Branch submitted a bill of law through the Ministry of Finance that amends several articles of the Pension Savings System Law (LSAR).
through the Ministry of Finance, presented an initiative to modify various articles of the Retirement Savings System Law (LSAR). The most relevant changes are as follows:
Since the costs of the creation of additional Investment Funds are marginal compared to those incurred in the case of the SIEFORES, the AFORES would be able to open the necessary number of funds to migrate to a Target Date Funds (TDF) system, or “Life Cycle Funds,” which seems to be the new government’s intention, due to the benefits it entails.
In principle, the proposed changes could benefit workers through the obtainment of higher returns, greater liquidity and facilitating the use of part of the invested funds. However, the true impact of this reform will be assessed in the secondary regulations.
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4 February, 2025
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