Details of the Argentinean Pension Reform

Last November 20th the senate from Argentina approved a new law that created the Integrated Previsional System. The new defined benefit system will take over the private pension account based system. Here are some details of the reform:

• All money of the individual accounts will be administrated by ANSES.
• Money will be used only to pay pensions and will be invested only in Argentina.
• Every worker has the option to transfer the balance in their voluntary account to ANSES, in order to increase his pension; or to a new kind of pension found which, on these cases, will substitute the old pension fund managers (AFJP).
• Periods of contribution in capitalization system will be recognized by ANSES;
• Retired people, who receive their pension from an insurance company, will continue with the same system, but pensioners who received their benefits in a programmed withdrawals scheme, now will be beneficiaries of the public system and ANSES will pay their pensions.