The bill aims to better the income of retirees, many of whom receive pensions below the poverty line after decades of work.

Since the time of Augusto Pinochet’s dictatorship (1973-1990), workers’ contributions have been managed by companies called Pension Fund Administrators, which in some cases are an extension of transnational corporations. Said entities profit from the funds under their care and obtain large profits, but pay very low amounts to their members.

One of the points of disagreement between the government and right-wing political parties is the destination of the additional six percent that employers must contribute to increase the income of retirees.

Minister of Labor Jeannette Jara announced on social media her intention to hand over to the deputies a formula called 1-2-3, which means that a part of that six percent will serve to strengthen the formal employment of women; two will go to the workers’ individual savings fund, which is untouchable and can be inherited; and the remaining three to social security.

The latter will function as a solidarity mechanism to immediately begin to raise the lowest pensions and raise the quality of life of its beneficiaries.

The right, however, insists that the six percent go entirely to the individual savings fund, which would mean a large injection of capital to the entities in charge of managing that money for their own benefit.

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