BUENOS AIRES, Oct 22 (Reuters) - 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