The Argentinean government announced the dismantlement of the private pension scheme embodied by the network of administrations of pension funds (known as AFJP), severally hit by the crisis. The 9.5 million members of this fund will be transferred to the public scheme, which implies that the pension system will be unified again. The State will ensure the protection of their pensions and get 15 billion pesos (3.5 billion euro) a year in contributions. (Ref. 080810)
The government’s argument to nationalize pension funds lies in the major losses registered by the AFJPs (Administradoras de Fondos de Jubilaciones y Pensiones in Spanish) as a result of the financial crisis. This private network was created in 1994 and has 9.5 million members, whom the Argentinean State will now take responsibility for.
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