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The core of the fraud of the administrators
by Mario Cafiero and Llorens Javier
Encouraging selfishness as the antithesis of the solidarity system, quarterly AFJPs make them reach their contributors have summarized the share of senior Update your funds. We also advertise on their high yields, currently showing on the record, through UNION AFJPs, cumulatively they reach 14% annual nominal and real annual rate of 7%.
What is not clear to their members-and here lies the fraud, is that these returns are calculated, not on the contributions made by the member, but on the net AFJP finally credited to your account, after having kept commissions, insurance, etc.
If one takes into account the contributions actually carried out, not borrowers, and the combined price index, the results change dramatically, becoming earnings losses, as seen in Table 1 .
it is noted that the nominal yield is halved, going from 12 to 6%. But at the time the real yield, which is the determinant becomes negative 5% a year, with a loss of -27% on contributions made, obtaining similar results in U.S. (-5%, -29%).
calculation even worse if one takes into account the financial effort made by the contributor, who by reason of the de-funding of the creation ANSES Private Pension Funds in the year 1995, he was recharged three points of VAT, from 18 to 21%. Like most workers consume their wages in full, this means that instead of providing a theoretical 11% of their salary actually spent to provide 14% of it. Considering the existence of these 'total contributions "by the insured, the loss (as noted at the beginning) climbs to -45% of the funds, with a negative return of -9% per annum, yielding a similar number in the equivalent U.S. dollars (-46%, -9%).
balance reveals the character of a partner with the lion's share with the AFJPs to their members. Commissions AFJPs on the net proceeds credited to the members, arrived at 14 years of the enormity of no less that 46% of these, like a demented gabela contributions imposed on employees. The
TABLE 2 can visually see the final results in pesos and indexed pesos which have led to the adventure of Desadministradoras Pension Fund.
The supposed freedom of choice that would legitimize the scam
lucid minds that are supposed to argue that the regime of the administrators should continue, that would have been freely chosen by their intended beneficiaries. However, these were first forced into the corral of the AFJP. And then they were given the option to leave it. Or do it later. Logically, the majority chose to leave were those who were closer to retirement, not being an issue for others within their sphere of interest in those moments, with the option to opt out even later.
This disclaimer of opinion, had they been made after joining the force, it has been taken as a kind of democratic ratification of the administrators. Something like saying that all those who abstain from voting on the government, have voted for him because they have not stopped winning.
But this absurd logic of a sophist itself is not the worst. The most serious is that the vast majority of contributors to Pension Funds, entirely unaware of the nature of the regime of the administrators. Which in its 14 years of its existence seem to be particularly concerned that the same is not known in all its dimensions. The free choice is a conscious awareness of what is decided. If this does not exist, there is no free choice, but deception and fraud.
The evil nature of the pseudo-retirement of the administrators
The system of the administrators stated:
• The income required of the employee (this is the only thing that has changed now.)
• Contributions defined by the same (11 % Of salary). • Accreditation net
indefinite, by subtracting fees and insurance to be collected free by the AFJP (this has been corrected now with a "solidarity" to deal with disability and death of the contributor, of dubious management) .
• Benefits indefinite, with all the financial risks and existence by the member, who must also pay for life insurance and disability insurance.
• Finally, obtaining a pseudo-retirement, retirement or a trout, with the scheduled withdrawal of their savings, and until they are exhausted, and after "kaput." Taking Charge in the meantime the retired financial risks, existence, and the consequent payment of monthly fees. If you live more than what the tables say longevity (80 years male, 82 years female) run out of pseudo-retirement of the administrators. If AFJP funds down, low retirement. If AFJP funds evaporate, runs out of retirement
• Alternatively the member is left with the hiring of an insurance annuity, holed in this way to the affiliate AFPJ a related insurance company, where insured must bear the cost of financial risk premium to exist, thus decreasing even more their pitiful retirement. So
AFJPs are in any way retirement. Are just a forced savings system, with all the risks by the contributor in the future to buy a pension. And criminals are left entirely open in the law and outside the supervision specified, the two ends of the business.
entries in the business: the commissions to be set free, and life insurance contracts supervised by the Superintendencia de Seguros. In
out of business: to collect monthly fees for the retirement program, the insurance or annuity supervised by the Superintendencia de Seguros.
The essence of the administrators: a formidable business finance and insurance
AFJP The essence of financial business is a formidable zero risk, and a huge insurance business. Financial, in order to synergistically enhance the power and financial affairs of the big banks, by exercising the parallel control of a huge flow of money, sweet and soft, no risk for him to transfer all risks to the affiliate. And a huge insurance business, where the member is holed obligations in the related insurance companies, being responsible for all risk premiums.
is a perverse form part of the administrators to circumvent and split the risk. Instead of a "private retirement" is a forced savings by employee, that bears all the risk taken by the administrator. Then comes a return on savings shares, simulating retirement. That is not so, because the retiree is assured, neither the amount nor the existence of there for the rest of his life, and their family members entitled to pension.
If the newly retired wishes to avoid this uncertainty about the duration and consistency of its assets, after running with the risks and losses incurred during 30 to 45 years, have to hire a pension insurance for life, or income lifetime, which again should bear the cost or risk premium. Those who even after 2001 they were tried pesified, despite being contracted in dollars.
is particularly repugnant to the capitalist system, whose right to the income is presumably based on the remuneration of the resources used, and the assumption of risk which have been ordered AFJP absolutely not to make any payment of funds that holds .
And do not assume any financial risk, to collect their huge fees in full in advance, to opt out entirely in practice the development of funds other than a symbolic guarantee fund, and to endorse the risks of existence to a policy insurance contract with a related company, whose prize is entirely raw by the affiliate.
24,241 law that created the AFJP, another disgrace of the Congress of the Nation
In the annals of the degradation of the National Congress, marked by laws such as the Due Obedience and final point, Cavallo superpowers, labor flexibility The intangibility of deposits, the zero deficit law should also include the 24,241 who created the Pension Funds.
The "Title III funded scheme" of that law is only a glossary of terms establishing a comprehensive legal framework for that, all over him, the preying AFJP aspiring to retire someday, which were obligatorily trapped in it. The spirit of it is absolute freedom in the jungle, in the purest style of social Darwinism, or wild financial capitalism, the results today have worldwide.
is notable that the crucial aspects of the law, were not regulated by the executive branch, but, as expressly provided by law, were charged with the Superintendencia de AFJPs. The review body also became the regulatory body of the substance of the law, by Resolution and "Instructions" full of abstruse mathematics and differential calculations, whose understanding is only available to actuaries, mathematicians or experts.
formulas Resolution 125 of the former minister Lousteau, are strokes of first grade next to these hieroglyphics. This is the engineering of deception underlying the law. Who knows where hidden factor, coma, ratio or subtrahend is the intricacies that legalizes AFJP excessive profits. The same applies to the closed insurance business by the Superintendency of Insurance. Already said the superintendent of insurance was then the former chief of staff Alberto Fernandez. An example is attached at Annex the current resolution regulating the art 102 of the Act, based on the pseudo-retirement of programmed withdrawals.
The text of the law is full of traps. For example provides the commission for accreditation of contributions is calculated "on the tax base that gave rise to." Example 3.3% on wages. That actually is 3,3 / 11 of the contribution made by the member. That is nothing less that 30% of the amount contributed, which have been submitted and to society, would be disqualified from entering the system.
The little information that exists about the true extent of the law, evidence estafatorio his mind, which is a ruse or deception to deprive eligible people. The ruse was so effective that few seem to have realized the deception. Despite their authors, Domingo Cavallo, Horacio Liendo, Walter Schultess, Felipe Murolo, perpetrated later in 2001 other enormous crimes, for which at present must be held accountable before the law.
So while members remain passive in the AFJP as compared with fleeces taxpayers, are honest and progressive legislators now hold positions, which in practice conducive to the continuation of this absurd law.
The underfunding of the provinces as a result of the administrators
AFJP The regime not only caused a chronic deficit and the national state debt, but also the financial crisis moved the provincial States. From covenants, simple laws, DNUs, simple decrees, etc., the National replaced own resources from the Social Security System, who took over for co-participation resources to the provinces. Replaced
personal contributions were diverted to the AFJPs, and employer contributions were reduced or eliminated, with resources that were stolen in the estate tax co-participation with the provinces. This situation led to the primary distribution established by the Federal Revenue Sharing Act is amended 23,548 Nr continuously and become a real radio units from successive precoparticipación processes while maintaining the legitimate distribution coefficients, but generating a progressive reduction mass partner.
The amounts transferred by the provinces in the period 1993/2004 amounted to 74 billion of pesos, equivalent to 58 billion dollars at current exchange rate. Only in 2007 was estimated at 20 billion pesos in the provinces resigned partnership to fund social security. As an example, the province of Buenos Aires in 2007 gave the sum of 4.4 billion pesos, equivalent to its current and pressing deficit.
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