Chile’s Bachelet takes first step to creating state-run pension

Chile’s Bachelet takes first step to creating state-run pension
Tuesday, 17 June 2014 11:41
Posted by Parvez Jabri

SANTIAGO: Chile's socialist President Michelle Bachelet made good on another of her campaign promises on Monday, signing a bill to create a state-run pension fund as an alternative to the country's private pension funds, known as AFPs.

The state-run fund will look to increase competition in the market and incorporate Chileans who aren't a priority for the AFPs, such as independent workers, those with lower salaries, or those that work in isolated areas.

"We're aiming for improvements that in the medium and long term will guarantee a dignified old-age," said Bachelet, who took power in March for her second non-consecutive term.

Of the total 9.6 million workers eligible to save money with the private pensions, only 5 million do so periodically.

More:
http://www.brecorder.com/world/south-america/179414.html