Source: Boletin Diario de Seguros América Latina (BDSAL)

This week the Ministry of Economy and Finance (MEF) will receive the proposal for reforming the Private Pension System (SPP), drawn up by the multisectoral technical committee created for such purposes. This mixed committee comprising the Central Bank, the Superintendency of Banks, Insurance and AFPs (SBS) and the MEF has finished its work and will submit a series of measures for increasing competition and reducing costs in the SPP, which will translate into a reduction of the commissions the AFPs charge their members, said the Minister of Finance, in a government report.

The initiative also contemplates broader coverage of self-employed workers by this pension system. These proposals, said the minister, will be submitted to the approval of the Congress of the Republic in a bill of law. The next step will be for the bill to be approved by the Council of Ministers after which it will be submitted to Congress for discussion, he said.

The purpose, he continued, is for the bill of law to be signed into law prior to the legislative recess of parliament on June 30, 2012.

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