The System of Retirements and Pensions [Spanish acronym SIJP] Act 24,241 is in charge of covering the risks for old age, disability and death, being part of the Social Security System. It is compulsory for workers over 18 and it is composed by systems:
>>PUBLIC SOCIAL SECURITY SYSTEM:
It is based on the Government rendering of services financed by the Public Social Security System [Sistema de Reparto] (contributions for the Government). Benefits are granted through ANSeS, active population contributes with part of their salaries to be redistributed as retirement and pensions among the passive population, based on the Solidarity principle.
>> PRIVATE SOCIAL SECURITY SYSTEM
It is based on private capitalization, part of the benefits is granted by the Investments by Pension Fund Administration [AFJP] and by National Social Security Administration [ANSeS]. That is why the Private Social Security System [Régimen de Capitalización] is also called mixto
SOCIAL SECURITY SYSTEM CHOICE:
You can process it personally at any ANSeS office or through your employer. According to Decree 1495/01, workers have a period of 90 days from the start of the labour relation to choose one of the systems. This Decree also determines that if the worker doesn’t choose the Public Social Security System, within the period previously mentioned, he/she will be registered as “undecided” to the AFJP which collects the lowest commission. Once the option has been submitted, workers can move from the Public to the Private Social Security System, but not otherwise.
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