President Bachelet receives report from the Presidential Advisory Commission on the Pensions System
The team of national and international experts who have worked for over a year carrying out a diagnosis of Chile’s current pensions system met with President Bachelet yesterday in the Montt Varas Salon in La Moneda Palace to present the results of their analysis. “This report is the end product of the work carried out by those who contributed to this in-depth study into our current pensions system. And I would like to say right away that given the assiduousness and high standard of the work, I feel that this review is a major milestone which will enable us to realistically address the challenges and unresolved issues in the system,” said President Bachelet.
The advisory commission held 65 internal working sessions and 10 extended meetings. In terms of civic participation, there were 78 public hearings in Santiago and 30 regional dialogues, in addition to an opinion and perception poll on pensions in Chile. “In 2008 we reformed the institutional scheme of the pension system. Starting from the basic principle that the State plays a fundamental role in guaranteeing pension security for Chileans, we created the Solidarity Pillar, which meant that for the first time thousands of people were entitled to a pension,” the President explained. “The results are clear and have been confirmed by the commission in their diagnosis of the current situation. Were it not for the reform of 2008, poverty would be two points higher among people over 65: 9.6% would be living in poverty compared to the 7.5% figure in the 2011 Casen Survey, and extreme poverty would also be higher.”
President Bachelet then referred to the priorities identified by her previous and current administration with regard the pension system: “Firstly, the need to guarantee decent pensions for current and future generations; secondly, the need to address the gradual and progressive ageing of our population; thirdly, the need to structure a financially sustainable system based on best practices and finally, the need for legitimacy so that workers can put their trust in the system.”
In response to the commission’s report the President announced the next steps that will be taken in order to improve the lives of Chileans: “We have decided to set up a ministerial committee that will build on the work that has already been done by the commission. The committee will involve the Treasury, Employment, National Women’s Service, Economy and Presidency ministries. This team will deliver two specific products: firstly, a draft bill of feasible measures that can be implemented in the short term and secondly, a series of legal initiatives to address the more complex issues so that we have proposals for longer term modifications to resolve the major failings of the current system and give it greater stability and longevity.”