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Magda Hassan
12-04-2010, 11:26 AM
While most western countries are raising the retirement age and raiding pension funds to fund badly managed banks Bolivia is reducing the retirement age and nationalising its pension funds.

Country lowers retirement age to 58 (http://chicagobreakingbusiness.com/2010/12/country-lowers-retirement-age-to-58.html)

By Associated Press
Posted yesterday at 11:52 a.m.
Bucking a global trend, leftist-led Bolivia is lowering its retirement age and nationalizing its pension funds. Bolivia’s Congress approved legislation early Friday to make Bolivians eligible for full pensions at age 58. The country’s 70,000 miners will get to retire two years earlier.
The previous retirement age was 65 for men and 60 for women.
Bolivia’s decision to lower its retirement age runs counter to a global trend to raise retirement ages as life expectancies rise, birth rates drop and national treasuries come under strain from pension obligations. France raised its minimum retirement age to 62 last month — full benefits aren’t available now until 67 — while Greece is drastically cutting back early retirement opportunities.
President Evo Morales had pushed hard for the pension reform law, which also brings the landlocked Andean nation’s pension system under state control and extends pension protection to the 60 percent of Bolivians who work in the informal sector and currently lack pensions.
Morales is expected to sign the law, which is scheduled to take effect in mid-2011.
Bolivia’s Federation of Private Employers opposed the law, expressing skepticism the new system will be sustainable. Thirteen years ago, Bolivia privatized its pension funds after a state-run system collapsed.
The country’s two privately run pension funds — covering 1.2 million workers and run by Zurich Financial Services and the BBVA bank — will now revert to state control.
The law creates a “solidarity fund” into which workers and companies will pay. It will provide minimal pensions to informal sector workers who make voluntary contributions of their own for 10 years.
Bolivia’s worker’s federation, known by its Spanish initials COB, has been a strong supporter of Morales, a former coca growers’ union leader who is also the country’s first indigenous president.http://chicagobreakingbusiness.com/2010/12/country-lowers-retirement-age-to-58.html

David Guyatt
12-04-2010, 11:30 AM
It sort of makes a mockery of our illustrious western financial capitalism doesn't it. Bolivia is numbered 103 in ranking of Gross Domestic Product.

Ed Jewett
12-06-2010, 08:23 PM
Oh...
never mind...
I thought it said Bulova lowers retirement age
and I thought I'd finally get my watch. :musicus: