The “Fifty-somethings” are back to the question: Why are they seeking to repeal the provisions of the law that removed them from AFAP?

Editorial in El País
behind 1996 Retirement Reform (Approved during the second government Julio Maria Sanguinetti) The problem began to arise in the “fifties”. Who was part of this group? Those who were under 40 years old on April 1 of that year and had to go to Mixed payment systemSocial Security Bank(BPS) and Pension savings fund administrator (AFAP).

This fact led to those who were excluded from the new regime receiving 30% more in pensions through the previous system than those who were then under 40, and who would be explicitly left out of the new regime. Economic disadvantages.

After learning about the situation, the group of workers created the above group to recover the lost funds. Ley 19.590which enables them to voluntarily migrate to a BPS-only contributory system to mitigate the financial loss for this age group, albeit with certain conditions.

in this case, The law requires people who switch from one pay-as-you-go system to another to pay 10% of the initial settlement amount of their retirement assets.to minimize the financial impact of the so-called “over-fifty” transition to an alternative contributory system, who have been harmed by it and, to this day, receive 10% less than they should have.

in some meaning, Basis Point The situation was analyzed. It was concluded that (given the approval of the above law) approximately 140,882 persons (including active and retired personnel) were eligible to migrate to the BPS system, although only 84,286 applied. In turn, of this total, only 36,729 persons actually migrated, which is only 25% of the planned total, so Economic impact The claim that 10% of pension is deducted is not true.

That is why the “Fifty-somethings” are back on the battlefield and seeking the repeal of Article 16 of Law 19,590 so that all their interests are guaranteed. retireIn addition, the organization insisted that the above discounts were “unfair and discriminatory” because members had already paid all the corresponding contributions, but under the law they were given only two options: continue with the hybrid system (most of which were fifty-somethings that would be disadvantaged in the retirement calculation) or go Basis Pointthey were deducted the already mentioned 10% “for arbitrary and purely fiscal purposes” because they had performed the same operation contribute than any other worker.

Likewise, the “Fiftys” stressed that their group was never asked to participate in the discussion Ley 19.590leaving them unable to prepare.

The group insisted: “It is unacceptable that we, like other age groups, are repeatedly victimised as a result of poor predictions and speculation in 1996 and 2017.”

After understanding this situation, Broad Front deputy Felipe Carballo proposed a bill The bill proposes to repeal a provision that disadvantages people in their 50s with a 10% wage increase, which would be automatic but not retroactive.

The reason given by Carballo in the bill is that “ 1996 Retirement Reform Among other things, no consideration was given to Intergenerational solidarity system These people have already contributed for most of their working lives and have little room or possibility to increase their pensions through a personal savings system.”

So far, House of Representatives Labor and Social Security Legislation Committee It is already working on the project and is expected to host a group representing the “Fiftys” this Wednesday to begin discussions.