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It seems that the new system unlike the former is capable to sustain "the test on

Suitability ".

Ernan Chejre in detail analyzes, as the pension system will function For members it who during any time used the old Insurance system.

To such persons the state sets off the sum of the previous payments in shape so

Named "the recognition check" which pays off proceeding from twelve The salaries preceding June, 1979

The author shows that the prospective sizes of pensions depend on the family

Positions of the client, age in which he has started to pay payments (18 or 25

Years), whether there was it the unemployed or not and other factors.

The conclusion which is of interest for clients of old system which have the right

On "the recognition check", consists in the following. For retiring in 2000 Its planned pension in worst of the hypothetical considered by the author Cases (the insured is married and paid taxes during 93 % of time of the Active labour activity) will make 88,8 % of the taxable

The income received by it at the moment of a retirement. At other variants pension

Can reach 130 % of the income but only if it does not exceed 220 thousand peso. In

Last case the pension will make no more than 62 % of the aforesaid taxable The income.

_it both systems _

Comparison of old and new system is uneasy business, in the basic because of

Absence of uniformity and complexity of the first. Nevertheless, the author of the preface

Has come to a conclusion that reform has brought obvious benefits to the worker and a society in

The whole.

At old system workers have been limited in a choice of pension cash desk. Today, as we see, at them this right is.

Earlier the size of pension payments reached 22,95 % of incomes in Service Social insurance to which two thirds of all belonged almost

Insured, and 24,91 % in Insurance cash desk of private employees. However, a part

This sum the employer, however should pay it indirectly also Reduced incomes of each worker. At new system the sum of payments fluctuates From 14,8 % for the lowest incomes to 14 % for the highest.

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