Operators Call for Comprehensive Pension Reform

The Salvadoran Association of Pension Funds has asked for changes in legislation to be made firm in order to increase the profitability of the savings of workers.

Wednesday, May 2, 2012

The Salvadoran Association of Pension Funds (Asafondos) asked President Mauricio Funes to keep his promise to carry out a second part of reforms to the pension system.

Funes offered to make the changes last month in order to raise the profitability of pension funds in light of strong criticism of the low returns paid on the contributor’s savings, reported Elsalvador.com.

"Enough time for the discussion of the importance of the profitability of the accounts of individual members has passed and as a country, we cannot afford to keep waiting for an opportunity, especially since this has already been announced by the President and the Minister of Finance, in the sense that they should seek better returns through better investment options,", said the president of Asafondos, Ruth Solorzano.

The executive, who is also president of AFP Crecer, cited a draft law on investment funds, and pending amendments to the Securities Market Law as examples of the issues that she is urges need to be completed.

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