What the Boric government is proposing to end Chile’s controversial pension system

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Anti-AFP protester in Chile.

image source, AFP


The end of AFP was one of the big demands of the social outbreak at the end of 2019.

One of the main demands of the social outbreak at the end of 2019 in Chile was the abolition of the current pension system.

And it became one of the symbolic pre-election promises of leftist President Gabriel Boric, who announced this Wednesday that he will send a bill to Congress to change the current private system of pension fund managers (AFP).

“AFPs are finished in this reform,” said Borić, announcing that the reform is based on the principles of social security with contributions from the state, employers and workers.

One of the most significant changes in the proposal is that it contemplates the establishment of a state body, a public asset manager, in order to put an end to the exclusive management of the criticized AFPs.

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