The pension reform entered parliament on 7 November. Marcel explained that he would raise the replacement rate for current pensioners by 16 percentage points and his regime by 25 percentage points.
Minister of Finance, Mario Marcel presented the Labor Committee of the House of Representatives with a series of exercises for estimating the replacement rate associated with the reform of the national pension. Universal insurance pension (PGU) within the framework of processing, pension reform.
After this presentation, which is in addition to two previous presentations for Members of Parliament, The project stands for a public vote on January 25th according to the schedule established by the same legislative body.
The pension reform entered parliament on 7 November.
the project is new mixed pension plan to create Social Security on the contribution pillar, which will be funded by additional contributions, with the pillar “Improving the amount and coverage of the PGU to $250,000”. 6% of taxable income paid by the employer.
exchange rate
Minister Marcel explained that the reform would increase the replacement rate for current pensioners by 16 percentage points and 25 percentage points within the government.
Of the present, he pointed out, 25% of the increase in replacement rate is explained by PGU and 75% by social security. On the other hand, under the administration, 36% are accounted for by PGU and 64% are accounted for by Social Security.
Without reform, he argued, the replacement rate would drop by 9% in the regime. On the other hand, due to reforms, the replacement rate remains relatively stable under the regime.
Similarly, for women, she explained that the reform would increase the replacement rate of current pensioners by 19% compared to the government’s 23%. 14-19 percentage points for men.
Regarding the current situation, the Secretary of State said that the succession rate is declining according to the number of years contributed.
Also, if the schematic only contains an increase in PGU, Declining trends by the years noted are highlighted a decline of 22 percentage points.
“With reform, replacement rates tend to remain stable up to 25 and 30 years of contribution, dropping by 10% for contributions of 30+ years, significantly lower than without reform. This indicates that the greater the number of years of contribution, the greater the improvement in the replacement rate. ” Marcel said.
In absolute terms, “median pensions for current pensioners remain directly related to years of contribution, $237,828 Up to 5 years quoted $538,577 Dieting for over 30 years $972,213 For over 30 years of contributions.”
Source: Biobiochile
