Bolivian airport blocked to demand enactment of pension fund withdrawal law

RIO DE JANEIRO, BRAZIL – The National Emergency Movement for the Refund of AFP and Social Security Contributions protested at the entrance of the Viru Viru airport brandishing Bolivian flags demanding the enactment of the Law for the Refund of AFP Contributions.

The movement’s president Yerko Orozco said that this protest is due to the government’s “lack of will” to enact the law, and decided to protest in the streets.

“Until this does happens, our protest will continue,” Orozco said.

The Bolivian Senate passed the law on August 26 and it was forwarded to the Executive to be enacted by President Luis Arce for subsequent regulation within 10 days, according to information from the Ministry of Economy.

This law establishes exceptionally and on a one-time basis that contributions of personal pension accounts of AFPs be withdrawn in order to “cover the needs arising from the Covid-19 pandemic.”

The regulation includes three modalities for the partial or total withdrawal of contributions.

It provides for the refund of up to 15% of contributions for individuals who have accumulated the maximum equivalent to some US$14,367, the partial refund of up to an estimated US$2,176 for individuals with an amount higher than or equal to US$14,367, and the third modality foresees a full refund for people with contributions of less than US$1,436, according to information from the Ministry of Economy.

It is estimated that at least 1,464,375 people could benefit from the refund of their contributions.

The withdrawal of pension fund money is not new in South America, as Chile authorized a withdrawal of up to 10% of funds last July and a second withdrawal in December.