American Council of Life Insurers: Global Financial Services Associations Urge Chilean Senate to Reject Measures Harmful to Retirees

WASHINGTON, Nov. 10 (TNSOps) -- The American Council of Life Insurers issued the following news release on Nov. 9, 2021:

The American Council of Life Insurers (ACLI) joined the Canadian Life and Health Insurance Association (CLHIA), the Italian Insurance Association (ANIA) and the Securities Industry and Financial Markets Association (SIFMA) in issuing the following statement today on pension and annuity legislation in Chile:

"As the Chilean Senate considers measures to mandate a fourth withdrawal from private pensions and a second advance payment on retirement annuities, we 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 imperils the country's financial stability. Chilean lawmakers still have the opportunity to avoid policy choices that will drain the country's most vital capital market, raise borrowing costs on businesses and consumers, and reduce the income of millions of current retirees.

"Global financial services investors in Chile, as well as Chilean insurers and pension providers, have consistently supported policies that would build up a robust multi-pillar retirement system in Chile, strengthen Chilean capital markets, and improve retirement income and financial security for more Chileans.

"We urge the Congress to avert its current course, end the vicious cycle of pension withdrawals and annuity advances, and pursue 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."