“There would be a worsening of the projected deficit from 2% to 8%, and an increase to finance it either in VAT or contribution rates, or in assistance from the central government. These are the numbers that emerge from the reports made by the technical services of the bank,” he explained. Alfredo Cabrerapresident of the BPS after a meeting with the Confederation of Business Chambers (CCE).
According to the report, which was also delivered to the coalition’s political parties, equating the lowest pensions to the minimum wagesas proposed by the PIT-CNTwould cost the State about 1,000 million dollars annually, almost double the budget that the State currently has. Ministry of Interior.
“Ending individual savings in a country that has a very low fertility rate and a very low asset-liability ratio is impossible,” warned Cabrera in reference to the end of the AFAPs which also proposes the reform of the trade union centre. “The only possibility we have of paying pensions and maintaining the system in terms of financing is with the mixed system“, he stressed.
This scenario would trigger legal uncertainty “not only because of the confiscation of savings managed by the AFAPs, but also because it calls into question the 1996 reform,” warned Exante partner in the past, Pablo Rosselli.
Along the same lines, he expressed Ignacio Munyodirector of Ceres, who added that “it is feasible that members initiate lawsuits for the Confiscation of savings “managed by the AFAPs”, estimated at 22 billion dollars. He also anticipated that “the AFAPs could do the same, claiming lost profits for the commissions scheduled until the members retire.”
Previous studies by the BPS showed that a five-year reduction in the retirement age would represent an increase in public spending of around 3 billion dollars, including the BPS, as well as the Military, Police and Parastatal funds, equivalent to 4% of GDP.
Source: Ambito
