LatinNews Daily - 07 November 2022

*Chile’s Finance Minister Mario Marcel has told local radio station Universo that President Gabriel Boric’s proposed pension reform will cost the State between 1.2% and 1.5% of GDP, equating to around US$4.5bn. According to Marcel, this extra cost will come from financing an extra 6% increase in the Pensión Garantizada Universal (PGU), a minimum monthly pension for anyone older than 65 regardless of whether they contributed or not, and the operation of the new autonomous public administrator (APA), which will take on the support and account management role currently undertaken by the Administradores de Fondos de Pensiones (AFPs), the privately run pension fund administrators that the reform looks to do away with. Announced on 2 November, the long-awaited pension reform, which aims to benefit lower-income workers and women, and allow contributors to choose between public and private fund managers, has already come under criticism from congressional leaders, the industry, and grassroots movements.

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