The Bolivian government began the transition to its new state pension system with the announcement of the activities of the Public Managera nationalization process that had been announced 12 years ago, and that this Friday started with the registration of new contributors.
The president of Bolivia, louis arcetogether with the Minister of Economy, Marcelo Montenegromade official the partial start of the activities of the Public Manager in the administration of the Contributory and Semi-contributory Regimes of the Comprehensive Pension System, which will be the only body in the country for this item.
maple rated “historic” this advance in Bolivians will no longer have to register with a private Pension Fund Administrator (AFP), but in the Public Manager that is in charge of the Bolivian State.
“Today we are advancing along the line of that our pensions go gradually, gradually to be administered by ourselves, the Bolivians, as it should always be“Arce said.
The president indicated that from this Friday the registration of all new contributors to this pension fund will begin, to which all Bolivians who contribute must join.
The Public Manager is expected to conclude the migration process of all the information of the contributions registered in the private AFPSas AFP Futuro de Bolivia and Previsión, until May 2023 when it begins to fully operate, despite the fact that this entity has already been created for seven years.
Today is a historic day for the pension system, because from now on Bolivian men and women who want to join and contribute for their retirement, will be able to do so through the Public Manager, with which we deepen sovereignty in the administration of our economy. pic.twitter.com/jKX7aVDBd3
– Luis Alberto Arce Catacora (Lucho Arce) (@LuchoXBolivia) September 9, 2022
QUESTIONS TO THE AFPs
“In Latin America today there are questions about the AFPs, which we had already advanced, therefore, we should feel proud to be the pioneers in pension administration”said Arce.
For his part, Montenegro explained that the Public Manager is going to focus on “the well-being of the retired worker” and that the profits of this entity will be used to finance the solidarity fund and the dignity incomea monthly subsidy that benefits people over 60 years of age.
Policyholders will no longer have to pay different commissions, but only one, and that institution will have some 31 offices with the aim of providing “personalized attention,” Montenegro said.
Bolivian pension funds are currently managed by the AFPs Futuro de Bolivia and Previsión, the latter a subsidiary of Spain’s BBVA, until the process of nationalizing the retirement system is completed.
TWELVE YEARS OF WAITING
The government of the then president Evo Morales approved in 2015 the decree establishing the public pension manager and in September 2017 issued another rule that postponed the start of its operations until March 2019.
Precisely in 2019, the Bolivian government decided to postpone until 2021 the start of the state pension administration because the software was not finished.
The Public Manager was created on January 14, 2015 covered by a law enacted in 2010.
In July of this year, the International Center for the Settlement of Investment Disputes (ICSID) issued an arbitration award that obliges Bolivia to compensate BBVA with 105 million dollars for the “unjustified delay” in the process of nationalizing the pension system. .