WASHINGTON – American Council of Life Insurers (ACLI) Chief International Officer Brad Smith made the following comments today on pension and annuity legislation in Chile:

“As the Chilean Senate considers the 4^th pension withdrawal and 2^nd annuity advance measures, we again urge Senators to heed the profound warnings made by the Chilean Central Bank, the financial regulator (CMF), and distressing signals from the financial market that this legislation is unjustified and even reckless. Chilean lawmakers still have the opportunity to make choices that would improve retirement financial security for Chilean workers now and in the future. Unlike the measure now under consideration, none of those choices involve further destabilization of the rule of law, consumer protections and Chile’s global reputation as a well-regulated economy.  

“ACLI and the life insurance industry have consistently supported proposals that would build up, and not undermine, a robust multi-pillar retirement system in Chile. To that end, we strongly encourage Congress to enact laws that:

• Expand the Solidarity pillar and an increase in basic pensions;
• Introduce an employer contribution to the funded (AFP) pillar; and
• Facilitate the continued ability of AFPs and life insurers to deliver solid investment returns and lifetime incomes for Chileans.

“We urge the Congress to pass such positive reforms in a manner that does not eliminate citizens’ current savings, place undue burdens upon current workers, expropriate private assets, or undermine the rule of law.”

The American Council of Life Insurers (ACLI) is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. 90 million American families rely on the life insurance industry for financial protection and retirement security. ACLI’s member companies are dedicated to protecting consumers’ financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI’s 280 member companies represent 95 percent of industry assets in the United States.

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