Hello, and welcome to the Latin America Weekly newsletter! In this issue: Chile bets on a new progressive reform. AMLO’s take on Elon Musk and Twitter. And the policies protecting the Ecuadorian Amazon.
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Boric bets on pension reform after constitutional reform failure
After taking a strong blow with a failed constitutional referendum, Chile’s President Gabriel Boric is looking to regain the political initiative with a pension reform proposal that addresses one of his central campaign promises and would reshape a pillar of the country’s much-criticized social security system.
The system. Registered Chilean workers are currently mandated to contribute 10.5 percent of their salaries to individual capitalization accounts, managed by private companies known as Pension Fund Administrators (AFPs, in Spanish).
- AFPs invest that money into financial assets such as stocks and bonds in exchange for a fee, with the goal of saving money for their clients’ retirement.
What’s new? The bill Mr. Boric introduced would mandate another 6-percent contribution each month, taking the total to 16.5 percent, closer to OECD standards.
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