Centre for Policy on Ageing



The end of privatized pensions in Latin America
Author(s)	Manuel Riesco
Journal title	Global Social Policy, vol 9, no 2, August 2009
Pages	pp 273-280
Source	http://www.sagepublications.com
Keywords	Pensions ; Private pensions ; Social policy ; Argentina ; South America.
Annotation	The government of President Cristina Fernández has once again surprised the world, nationalising the pension system that Mennem had privatised 14 years earlier in Argentina. In one bold stroke, she wiped out the private administrators, which were known in that country by their Spanish acronym, AFJP. The State has regained control over the pension savings accumulated by Argentinians, and in return has offered them the guarantee of a decent lifelong pension. 'Expropriation' claimed the owners of the AFJP. However, the government has only forwarded exactly the same fate that awaited all affiliates, supposedly the owners of the accumulated funds. At retirement, in order to secure a lifelong pensions they would have been forced to transfer the property of the fund to private insurance companies. In addition, the Argentinian affiliates have gained important benefits with the nationalisation. Probably soon, and certainly later on, many other countries in Latin America will follow their lead. (KJ/RH).
Accession Number	CPA-090914215 A
Classmark	JJ: JK: TM2: 7W8: 7W
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