The strength of this second pillar, which has managed its members’ resources efficiently for 26 years, is that it has allowed the Government the budgetary leeway necessary to enable it to concentrate its attention on the weaker sectors of society.

The great merit of the reform is that it sets out a system based on (these) (se han mencionado solamente dos) three pillars, adopting the measures needed to reinforce each one of them: the first pillar, by creating the Basic Solidarity Pension and the APS (?); the second pillar, by encouraging contribution among sectors that have shown less contribution density, such as young people, independent workers and women, and improving investment regulation; and the third pillar, by means of new incentives to save voluntarily.

The AFP System, which has been operating for 26 years, has seen a change in its members’ conduct.Without considering the legal obligation, they have decided to build their pensions by paying in contributions that exceed the legal amount.

In this way the objectives that constitute the essence of pension systems are being achieved: avoiding poverty in old age and providing replacement income for workers when they move from the active to the passive stage of life.

The first task is to meet the expectations of those who hope that the pension system will be capable of funding the pensions of workers who retire.The law gives a set of regulations that are indispensable for the implementation of the reform, so that the Superintendence may set the rules and standards, and we wish to collaborate in this process for the success of the system. As far as the AFPs are concerned, we will make all the efforts that may be necessary to meet the information requirements that will be vital for converting the regulations into concrete facts for our pensioners.

We took on this difficult task of encouraging saving almost 27 years ago, however, and will continue to work on it with enthusiasm, because millions of people have entrusted their future to us and many workers will join in the course of the coming years.Encouraging Voluntary Pension Saving (APV) on the basis of the five types of fund that we have, is a challenge that the industry will accept.

Putting the law into practice will demand a great effort of management, coordination and interaction among a number of actors.The will to act jointly is therefore required.It is also necessary for members to be confident that their fund-managers are making their best efforts to provide the best yields for their savings and are offering a high-quality service.The discussion and debate phase is over and the time has come to find answers to the law’ s demands, which means acting with responsibility and prudence, with the prospect of consolidating the best pension system for Chile.

We cannot ignore one of the Marcel Commission’ s first conclusions: the AFP system will fund pensions similar to their wages for all those workers who contribute regularly.Although our obligation has remained clearly focused on funding the pensions of those who pay contributions, we understand that our responsibility also extends to guaranteeing that the system as a whole operates well.That is our commitment.

Guillermo Arthur
President of the Chilean AFP Association