The scam
century by Mario Cafiero and Llorens Javier
This report makes a preliminary assessment of the 14 years since the creation of the administrators. These days they say many controversial words about it, but generally accompanied by a few numbers. But on economic issues, the most eloquent arguments given numbers.
What honest and tell us aggregate numbers?
• That in the fourteen years of existence of the administrators, from 1994 to 2008, diverting money that would correspond to ANSES, including their financial burden by 170 billion pesos, equivalent to 89 billion dollars.
• That the Retirement and Pension Funds (FJP) accumulated to last June were 99 billion pesos, but given that government securities has overvalued the real value of these funds was 84 billion. So that in particular the dissolution of the administrators, ANSES only recover less than half of the money that he stole.
• The financial effort made by the contributors, adjusted for the combined price index (CER + Wholesale Price) - climbed in June to 158 billion pesos. This amount includes the 3-point increase in VAT, ready in 1995 to refinance the ANSES, before the de-funding of the body caused by the creation of the administrators.
· Regarding Fund 84 billion pesos, which is to rescue, this represents for contributors a loss of -46% effort, with a negative return of no less than -9% annually. If the figure is expressed in dollars, 27 billion dollars from the Fund, against U.S. $ 51 billion incurred by the contributors (computed in the same way), account for such a loss of -46% in dollars, with a negative rate of -9% annually.
• If you do a projection from historical results, future retirees men of the administrators, charged by the retirement of the administrators of between 13% and 18% of their last having, as they have paid contributions for 30 or 45. Far from 82% mobile aspiring law. In For women, to retire at 60 years, the results are even more painful. Charge between 8% and 11% of their last having, as they have made contributions for 30 or 45 years.
• These figures disastrous as the historical background, do not improve much if half projected an optimistic scenario, assuming correct the worst excesses in the Pension Funds incurred, the full view of governments. The numbers say that retired men would retreat to charge between 18% and 27% of their last having, as they made 30 or 45 years. And women will go to receive between 12% and 16% for the same range of years.
• Maintenance means those optimistic assumptions, the funds of the administrators would have to achieve a sustained yield over 30 to 45 years of 12% and 8% respectively, with no hard currency inflation, to retired men can achieve a 82% withdrawal of its last credit. And for his part in the case of retired women, the yield would rise to 15 and 10% per annum for the same purpose.
Greed is good says AFJP UNION
Obviously the latter is impossible. From a financial utopia. As the bubble of subprime mortgages that has just exploded on Wall Street. And sexist, for gender discrimination involved. These rates would only be feasible to obtain with speculative investments in junk bonds, they are expressly forbidden to interim funding, which prioritizes safety over performance.
also can not be sustained on a continuing basis over time, and would represent a speculative gymnastics over 30 to 45, own not a pension fund, but a vulture fund. Jumping frantically from one investment to another with constant profit taking, with a high risk of default. A continuing financial raffle, assuming not only the risk of not getting any profit, but to bear heavy losses.
However, this is the "new" output given by the camera that brings together the AFJP, UNION AFJPs, without noticing the moral and conceptual rave that this represents, if it focuses on systemic issues. "If we all steal, not everyone will be richer," said Keynes. And of course in this raffle zero-sum financial market, some funds of retirees and others will win ... shorn. Leaving
definitely the solidarity system, the selfish funded system would become so anti-solidarity system, under the motto "greed is good", although this just failed spectacularly on Wall Street.
commissions are also very good ... for AFJP
respect to the fees charged by AFJPs, its amount since 1994 amounts to 19 billion of pesos, equivalent to 37 billion pesos at today's value, and 31.5% of revenue. Measured in dollars that we AFJP pocketed 12 billion dollars for this concept, in its 14 year existence. This represents almost half of the existing fund to date in dollar terms, u $ s 27 billion. This ratio of almost one for AFJP, against two for retirees, shows the scale of the fraud perpetrated by the Pension Funds.
To justify this abuse say AFJP an important part of the commission was for payment of disability and death of members. They do not tell the AFJP insurance companies they hire are exclusively linked to business groups.
is devastating to the report of the Planning Unit, Regulatory and Communication SAFJP February 2001: "All AFJP hired the group insurance to disability and death related companies." And the same goes for annuity insurance to obtain retirement.
Apart from funds from the latter, the AFJP diverted them to their death and disability insurance in an amount close to 20 billion pesos current value. It is unfortunate that during the long years of the regime of the administrators and over the years that Alberto Fernandez is the holder of the Superintendent of Insurance and then Chief of Staff, did not do anything to stop this negotiation.
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