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FIAP > Press Releases > The Multilateral Ibero-American Social Security Convention has come into effect in six countries in the Ibero-American Region

The Multilateral Ibero-American Social Security Convention has come into effect in six countries in the Ibero-American Region

1 September, 2011

Source: FIAP based on www.minrel.gob.cl and www.oiss.org

On September 1, 2011, Chile subscribed the Agreement for the Application of the Multilateral Ibero-American Social Security Convention (hereinafter the Convention) in the Ibero-American Secretariat General (SEGIB), becoming the 6th country in which the Convention will come into effect. Thus, the Convention is rapidly being implemented and the countries that have still not signed the agreement are expected to do so soon.

On the occasion, the Agreement was signed (see attached PDF at the foot of this page with the signed agreement) by the Minister of Foreign Affairs, Mr. Alfredo Moreno, the Minister of Labor, Mrs. Evelyn Matthei, the representative of SEGIB, Mr. Norberto Ianneli, and the Secretary General of the Ibero-American Social Security Organization (OISS), Mr. Adolfo Jimenez.

According to official information, the Convention has been signed by 14 countries to date, 11 of which have ratified it legislatively. Of these 11 countries, Chile is the 6th one to subscribe the Convention Application Agreement (see Chart).

Summary of the countries that have signed the convention and in which its application is effective

Countries that have subscribed the Convention Date on which the Convention was subscribed Ratification date Date on which the ratification Instrument was deposited in the SEGIB-OISS Date on which the Application Agreement was subscribed Effective Application of the Convention
Argentina 10/11/2007 09/06/2010
Bolivia 10/11/2007 08/11/2010 02/02/2011 18/04/2011 x
Brasil 10/11/2007 30/10/2009 11/12/2009 19/05/2011 x
Chile 10/11/2007 18/11/2009 30/11/2009 01/09/2011 x
Colombia 26/11/2008
Costa Rica 10/11/2007
Ecuador 07/04/2008 31/08/2009 04/11/2009 20/06/2011 x
El Salvador 10/11/2007 29/05/2008 04/09/2008
España 10/11/2007 05/02/2010 12/02/2010 13/10/2010 x
Paraguay 10/11/2007 15/12/2010 09/02/2011
Perú 10/11/2007
Portugal 10/11/2007 27/10/2010 22/12/2010
Uruguay 10/11/2007 11/05/2011 26/07/2011 26/07/2011 01/10/2011
Venezuela 10/11/2007 16/02/2009

As is known, the Convention will enable citizens of the Ibero-American countries to access a pension, adding their acknowledged years of work in different countries, regardless of their place of residence. This convention will directly benefit 4.5 million people and potentially 600 million, according to OISS estimates.

Minister Moreno praised the initiative, pointing out that “it complement’s Chile’s bilateral agreements with other Latin American countries and will make it possible for migrant workers of Chilean and other nationalities to aspire to a better standard of living in the near future. Especially important is the inclusion of Spain, which has the third largest number of Chilean migrant workers after Argentina and the United States.” This Convention in fact strengthens the social security situation of Chileans resident in Latin America, Spain and Portugal.

There is no other example of a group of countries having adopted a joint approach to migration and social security issues, so this instrument is a pioneer in its field and opens new perspectives for future cooperation between states, or between regions, in the sphere of investment and social protection for their workers.

In fact, the Ibero-American community has defined its next challenge as negotiating a social security convention with the European Community as a block. The instrument also considers the introduction and application of technologies for transmitting the applications for the pension benefits granted by the Convention. Chile, Argentina and Brazil are currently developing an electronic social security data transmission system that will enable modernizing and shortening the application procedures for the pension benefits enshrined in the convention.

For the International Federation of Pension Fund Administrators (FIAP), the subscription of the Convention Agreement by the different countries is a tremendous step in the right direction for achieving integration in matters of pension benefits for migrant workers, enabling them to opt for the best work opportunities in their destination countries with the corresponding ongoing social protection, depending on their countries of origin. In this regard, FIAP offers its services as a bridge and facilitator between government agencies and the pension industry for ensuring that the technical aspects involved in materializing the Convention between different countries are implemented as smoothly as possible and also ensuring progress in the Bilateral Social Security Agreements which share the objectives of achieving the portability of pension benefits between countries. (A good example is the procedure for transferring funds between the different Individually Funded Pension Systems, which in the case of Chile and Peru is already operative due to the respective Bilateral Convention).

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