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FIAP > FIAP Newsletter > Progress of the Pension Systems April – May 2016 No. 2

Progress of the Pension Systems April – May 2016 No. 2

7 July, 2016

NEWS HIGHLIGHTS IN THIS ISSUE:

Pacific Alliance: Finance Ministers of the Pacific Alliance agreed to request technical assistance from Multilateral Development Banks to carry out a prefeasibility study of an infrastructure fund, which would encourage participation of private investors in infrastructure projects in the region.

Chile: Superintendency of Pensions announced pension education plan and expansion of investment alternatives for pension funds. The government is drawing up rules and regulations for the AFPs to be able to invest directly in alternative assets, including investments in infrastructure and private debt securities (real estate, private equity).

Colombia: Assets in which mandatory pension funds can invest are reorganized, separating traditional from alternative assets. Rules and regulations unify limit applicable to investment in local private equity funds, creating a new category of “restricted assets” and allowing funds to commit up to 1% of the value of the fund in purchasing securities that finance 4G road projects.

Mexico: Guidelines established that Afores must follow for direct Investment in Project Certificates (CERPI) and Fibras E. With these new instruments, the Afores will be able to invest in projects in all sectors of the economy (complementary to Development Capital Certificates) and participate in the development of energy and infrastructure projects.

Peru: As of May 27, members of the private pension system who opted to withdraw 95.5% of their funds, may access their savings (the remaining 4.5% is paid to the State Social Insurance (EsSalud) for maintaining coverage and health services). Passage of the law that will allow this option for Programmed Withdrawal retirees is still pending.

This document, drawn up by FIAP based on press information, reports on progress in pension matters, factually accurate while maintaining maximum simplicity and brevity. It compiles the major changes that occurred in the pension systems in the April – May 2016 period, with emphasis on the development of the individually-funded systems. We thank FIAP member associations for the information and comments submitted. The content of this document may be fully or partially reproduced citing the source.

FIAP Newsletter N° 19

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