BUENOS AIRES Oct 22 Argentina's President
Cristina Fernandez sent a bill to Congress on Tuesday to
nationalize the 14-year-old, $30 billion private pension system.
Here are key elements of the bill.
PRIVATE FUNDS MOVED - The National Social Security
Administration state system takes over administration of private
pension funds. The state will recognize contributions made to
private funds. Pensions will be calculated according to the rules
of the state system.
VOLUNTARY CONTRIBUTIONS - Pension savers who made extra
contributions to their retirement account can chose to move that
amount to the state or keep it in an individual retirement
account in a private fund. The private pension fund
administrators can continue to handle private accounts for
individuals who choose to maintain accounts above and beyond
their obligatory state contributions.
STATE PENSIONS - Retired people draw a minimum state pension,
which is roughly $100 per month currently, plus 1.5 percent of
their average salary of the last 10 years they worked and
contributed. Minimums will be adjusted for inflation and other
factors two times a year, under current law.
BENEFITS - The state guarantees benefits from the state
system will be equal to or better than the current benefits from
private pension funds.
CURRENT CONTRIBUTIONS - Monthly contributions will now go
into the state system. More than $4 billion a year in
contributions is what goes into the private pension system, that
will move to the state.
OVERSIGHT - Establishes a bicameral Congressional oversight
committee to regularly review the state pension system.
JOBS - Measures will be taken to preserve jobs of people who
work at the private pension fund companies.
(Compiled by Fiona Ortiz)