“What beautiful times when each of us had our retirement savings in our own private accounts and we could see the evolution of our savings every month,” he wrote. Marcos Galperin, on his Twitter account, recalling the times of the Retirement and Pension Fund Administrators (AFJP) of the 90s, proposed by the privatizing government of Carlos Menem.
The founder and executive leader of the company Free market, of Argentine origin and scattered throughout several Latin American countries, wanted to highlight the public retirement policy, regulated by the private sector, which was rejected and repealed with broad consensus. The termination of the AFJP restored the administration of retirement and pensions to the pay-as-you-go system commanded by the state body ANSES.
Criticism was not long in coming. “What beautiful times. The banks choreaba 30% of the contributions. Almost as squirting as ML“, wrote a user, under Galperín’s message. “The capitalization system was terrible. It charged ridiculous commissions (average of 30%), to later use those funds to buy state titles. 50% of men and 85% of women reached retirement age, but did not have access to a benefit”, another user specified with explanatory criticism.
Some statements pointed to personal experiences with the AFJP regime, one user commented: “I remember that I had my provisional savings in Siembra AFJP and that every account statement I received indicated that my funds were dwindling, It is seen that the managers had a bad eye for investments with ours. Well, when they were government it was the same”
“How nice… when they did what the ogt sang to them with our contributions without asking us anything… one day you were in Arauca, the other in sowing, the other in chuminga la pacha. They charged you what they wanted and You had no idea how much you were going to have left...aaaaahhh what times!!! “wrote another Twitter user ironically.
The Retirement and Pension Fund Administrators were companies made up of private or mixed capital (with a state percentage), dedicated to managing the funds generated with the retirement contributions made by the contributors. At that time, formal workers chose to be included in the regime established by the Law 24,241 pension reform of 1993, promulgated during the government of Menem.
The individual capitalization system worked in parallel to the state pay-as-you-go system. The objective was to gradually transfer all workers to the individually funded system. The AFJP received a commission, deducted from affiliates’ mandatory pension contribution, and managed the investment of the accumulated capital. Its operation was regulated by the Superintendence of Retirement and Pension Fund Administrators (SAFJP), under the orbit of Ministry of Labor.
In 2008, during the government of Cristina Fernandez de Kirchner, the AFJP system was eliminated, creating in its place a single state pay-as-you-go system, the Argentine Integrated Pension System.
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