Labor Federations Demand Dissolution of Pension Funds and Reimbursement of Lost Assets: Formal Request Submitted to the Superintendent

Original article: Federaciones de sindicatos exigen disolución de las AFP y reintegro de los fondos perdidos: Presentaron requerimiento ante la Superintendencia

The dissolution of pension funds is the primary demand from a coalition of labor federations and worker organizations, which have submitted a formal request to the Superintendent of Pensions in response to substantial losses recently reported by pension fund administrators.

The submission was signed by the Autonomous Central of Workers and Employees of Chile (CAT); the Federation of Mining Workers (Fetramin) from Codelco Andina Division; the Federation of Workers from Los Bronces Mining; the Federation of Unions of Workers from Nestlé; the National Federation of Food Handlers (Fenamar); and the National Federation of Cemetery Unions of Chile (Fenacisem).

Specifically, the workers are urging the Superintendent to «exercise the authority granted by Article 17 No. 3 of DFL No. 101 from 1980, and proceed with the revocation of authorization for existence, leading to the dissolution and liquidation in accordance with the applicable regulations, of the pension fund administrators concerning any serious legal violations in the management of derivatives and the affected funds».

You can review the full request HERE

Following the document submission, attorney Marco González stated, «We have come to raise the voice of the workers to the Superintendent of Pensions, demanding the maximum enforcement of the law in light of the financial disaster involving the retirement funds of workers nearing retirement, invested in U.S. swap assets».

«We cannot allow the pension fund administrators to continue this abuse, who attempt to evade responsibility with minimal fines,» González asserted.

Thus, the attorney added, «We’re here to demand the strictest punishment, which is the dissolution of the pension funds, because this financial disaster against the workers and our retirement funds cannot continue. Additionally, we demand the immediate filing of a civil lawsuit to ensure the full restitution of the lost funds from the individual workers’ capitalization accounts».

We will continue to provide updates.