The minister of Labor, Jeannette Jara, referred to the discussion about pension reform and assured that they are close to reaching an agreement on this matter in Congress.
Within the framework of the announcement of the Christmas bonus 2024 For pensioners, Jara stated that “since the pensions are so low, help is coming (…) among all Chileans we will use our taxes to support retired people in our contry with this bonus in this month of December.”
“We hope that this principle of solidarity becomes flesh not only once a year, in September or December, but hopefully it will be permanent over time. We cannot leave the elderly in our country abandoned,” he stressed.
The Secretary of state stated that They have a “challenge” and a “task” entrusted by the President of the Republic “to try to reach an agreement on pension reform.”
“It has not been easy, but as those of us in politics we do not have to be there for complaints, but rather, to provide solutions to citizens, “We have continued with persistence and, above all, with conviction, working to make that happen,” he stressed.
Along these lines, the head of Labor stated that “We are close to reaching an agreement, and this provisional agreement must have two main characteristics.”
“The first of them is that it has to recognize the people who are also retired today.They can no longer contribute at 6%,because they have already retired. And the years that these people contributed have to be recognized with a contribution from one generation to another who will then simultaneously occurring also receive that contribution,” he added.
Along with this, he maintained that “no one is going to take away anyone’s money. Nobody is going to expropriate anything.Nobody is going to steal your funds. “We’re just going to create a system that has a little bit of balance and stops being so individualistic.”
“Half of the pensioners in our country have a pension from their AFP that is $48,000 or less. The PGU is what increases pensions, but if we want to promote formality, contributions, this has to have a correlation, a result that makes the pension better.”he indicated.
Jara insisted that “a basic commitment of this is that currently retired people cannot be forgotten.”
Secondly, she commented that this reform “must have a woman’s perspective, without a doubt. “Women in our country earn less, they work more.”
how does the Chilean government plan to address gender disparities in the pension system during the reform?
Interview with Labor Minister Jeannette Jara on Pension Reform in Chile
Time.news Editor (TNE): Thank you for joining us, Minister Jara. The topic of pension reform has been a significant issue in Chile. Can you tell us how close we are to reaching an agreement in Congress?
Jeannette Jara (JJ): Thank you for having me. We’re indeed very close to reaching an agreement on pension reform. It’s a complex challenge, but we believe that persistence adn a focus on citizen solutions will lead us to a positive outcome.
TNE: You recently announced a Christmas bonus for pensioners applicable in December 2024. how does this reflect the government’s approach to aiding retirees in Chile?
JJ: Absolutely.Since pensions have been unacceptably low, this bonus is a measure to support retired individuals. It emphasizes solidarity, and I hope that this principle of support extends beyond just a seasonal benefit.We need to establish a permanent system that aids our elderly, ensuring they are not left abandoned.
TNE: You mentioned in your statements that this reform has two main characteristics. Could you elaborate on these?
JJ: yes, the first characteristic is that it must recognize current retirees who can no longer contribute at 6% but have contributed throughout their working lives. Their contributions need to be acknowledged by future generations,creating a more intergenerational system. The second crucial characteristic is the incorporation of a woman’s perspective. Women in Chile earn less and frequently enough work longer, so the reform must address these inequalities to ensure a fair pension system.
TNE: How do you plan to balance the contributions from future workers and the needs of the current retirees?
JJ: it’s about creating a system that values both the contributions of present and future workers while ensuring that no one’s savings are expropriated. Our goal is to create a more balanced approach that reduces individualism and promotes a collective responsibility towards pensioners.
TNE: You mentioned that half of pensioners currently receive pensions of $48,000 or less.What specific strategies are being considered to enhance these pensions?
JJ: The establishment of a system that promotes formality in contributions is vital. We need to ensure that the Basic universal Guarantee (PGU) effectively increases the pensions and correlates with contributions made. This means a more structured approach to pension benefits, ensuring that even the lowest pensions receive a boost.
TNE: what message would you like to convey to the citizens of Chile regarding these pending reforms?
JJ: I want them to understand that we are fully committed to not forgetting our current retirees.The reforms are designed with a deep sense of responsibility towards our elderly and a focus on gender equality. We are working hard to ensure that our pension system evolves into one that is fair and sustainable for all citizens.
TNE: Thank you, Minister Jara, for sharing your insights on the crucial issue of pension reform in Chile. Your commitment to creating a more equitable system is evident,and we look forward to seeing the outcomes of these discussions.
JJ: thank you! It’s an important dialogue, and I’m hopeful that we can make a significant positive change for our retirees.