AFP: A Revolution in Three Words: Reform of the Social Security System in Chile

Author: Juan Aristia, Editor-in-Chief
Publisher:
Publish Date: 2001-05-01
Features: The book "AFP: A Revolution in Three Letters" presented to the readers is a record of the reform of the social security system in Chile. The authors are those who researched and directly implemented the reform of the Chilean social security system from 1981 to 1990. This allows us to directly obtain first-hand experiential materials, refer to their experience, compare their ideas, and thus benefit the reform of China's social security system. The Decision of the 14th Plenary Session of the Third Central Committee of the CCP in 1993 clearly pointed out the reform direction of combining social pooling with individual accounts, with three basic principles: First, establish a national, multi-tiered social security system. In addition to basic social security, commercial insurance should be developed as a supplement. Second, the pension insurance for urban and rural workers should adopt a fully funded individual account system, with contributions from both employers and employees, and a pension contribution benchmark system. Third, the administrative management of social security and the operation of social security funds should be separated.