Country lowers retirement age to 58

By Associated Press
Posted Dec. 3, 2010 at 11:52 a.m.

Bucking a global trend, leftist-led Bolivia is lowering its retirement age and nationalizing its pension funds. Bolivia’s Congress approved legislation early Friday to make Bolivians eligible for full pensions at age 58. The country’s 70,000 miners will get to retire two years earlier.

The previous retirement age was 65 for men and 60 for women.

Bolivia’s decision to lower its retirement age runs counter to a global trend to raise retirement ages as life expectancies rise, birth rates drop and national treasuries come under strain from pension obligations. France raised its minimum retirement age to 62 last month — full benefits aren’t available now until 67 — while Greece is drastically cutting back early retirement opportunities.

President Evo Morales had pushed hard for the pension reform law, which also brings the landlocked Andean nation’s pension system under state control and extends pension protection to the 60 percent of Bolivians who work in the informal sector and currently lack pensions.

Morales is expected to sign the law, which is scheduled to take effect in mid-2011.

Bolivia’s Federation of Private Employers opposed the law, expressing skepticism the new system will be sustainable. Thirteen years ago, Bolivia privatized its pension funds after a state-run system collapsed.

The country’s two privately run pension funds — covering 1.2 million workers and run by Zurich Financial Services and the BBVA bank — will now revert to state control.

The law creates a “solidarity fund” into which workers and companies will pay. It will provide minimal pensions to informal sector workers who make voluntary contributions of their own for 10 years.

Bolivia’s worker’s federation, known by its Spanish initials COB, has been a strong supporter of Morales, a former coca growers’ union leader who is also the country’s first indigenous president.

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9 comments:

  1. WhoCares Dec. 3, 2010 at 7:18 pm

    Well those hard working Bolivian’s could retire at 25… what do they do to begin with. It’s not like it’s a global powerhouse of production… and just how hard is it to support a man that makes $300/yr. It’s easy be carefree when you ain’t doing anything.

  2. us Dec. 3, 2010 at 7:49 pm

    The rest of the world do you ignorant ************

  3. WhoCares Dec. 3, 2010 at 8:04 pm

    the rest of the world does… idiot. you must be one of those hard working folks that make the quilts

  4. WhoCares Dec. 3, 2010 at 8:07 pm

    should have known it.. a former union leader is behind this. that explains everything. just wait until they run into pension troubles like this great train wreck of ILLINOISE… oh how grand would it be to work for 20 years and then get a pension for another 50 years.. who pays for this? the quilt makers and the average joe pays for this crap

  5. Pete Dec. 3, 2010 at 10:57 pm

    South American countries are addicted to chaos. If it doesn’t already exist, they create it.

  6. rod paulson Dec. 4, 2010 at 7:47 a.m.

    keep me posted….ha ha.

  7. rod paulson Dec. 4, 2010 at 7:49 a.m.

    great—more illegals headed our way. What’s with these idiots to the south?

  8. Granden Dec. 4, 2010 at 8:16 a.m.

    Jan Schakowsky would be right at home with Evo Morales, because both are proponents of the “economics of make believe!”

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