International
Higher contributions and social security: the keys to Chile’s new pension reform
The Chilean Parliament gave the green light this Wednesday by a large majority to a pension reform promoted by the Government of Gabriel Boric that seeks to improve low pensions and proposes the most significant changes to the model created more than four decades ago by the dictatorship.
“It’s a tremendous achievement for Chile. It is an act of justice, of deep affection and respect for our people, which responds to what is one of the biggest debts that our country drags,” the president said in a public statement from the La Moneda palace.
Here are the keys to a reform that for some is “decaffeinated” and for others is an “achiemement” of a very polarized political class, which has not agreed for years on the great structural changes that Chile requires:
Established in 1981, in the middle of the dictatorship of Augusto Pinochet (1973-1990), the Chilean system was a pioneer in the region in installing individual capitalization and forcing each formal worker to contribute 10% of his monthly salary to a personal account that he can dispose of when he retires, managed by the controversial private pension administrators (AFP).
Its defenders argue that the model has contributed to the development of the national capital market, while its detractors consider that it is an abusive and unfair system and that it only works if you have a stable job and a high income, something unthinkable for the vast majority of Chileans.
“This system has not worked because of the way pensions are calculated. People who contributed between 35 and 40 years and retired in 2023 had a replacement rate of 32.6%, this is a third of their average 10-year salary,” María José Azócar, of the Sol Foundation, told EFE.
Pensions have been leading the polls on major citizen concerns for years and citizens had lost confidence in the ability of politics to improve them.
The refoundation of the system was also one of the main demands of the 2019 protests.
None of the reforms proposed by the Governments of Michelle Bachelet and Sebastián Piñera came to the surface and only partial achievements were obtained such as the creation of a public pension for the most vulnerable in 2008 and its expansion in 2022.
The reform, which has undergone substantial modifications since it was presented by the left-wing Administration in 2022, seeks to benefit 2.8 million retirees, with increases in their pensions of between 14% and 35%.
It also increases the universal basic pension to 250,000 ($253); gradually raises the contribution to 17%, at the expense of the employer; creates social insurance; incorporates intra- and intergenerational solidarity mechanisms and tightens industry regulation to make it more competitive.
“It is a reform that changes the face of what the dictatorship did to this country,” said the Minister of Labor and Social Security, Jeannette Jara, after the approval.
The economist of the University of Chile Guillermo Larraín explained to EFE that “the most advanced countries have mixed systems, but these are more dominated by the State, while in Chile the path has been the other way around, because it is moving from a very private system to a slightly more public one.”
It was negotiated with the traditional right-wing coalition Chile Vamos and, although it is far from what the Government aspired to, it is a breath of air for Boric, since it was one of his great campaign promises, along with the tax pact that he still does not manage to move forward.
The most radical part of the coalition that makes up the Government (Communist Party and Broad Front) voted in favor, despite believing that too many concessions were made during the parliamentary debate and that they gave up eliminating the AFPs and creating a system with greater state weight.
“This reform is valid and perfects the system of the AFPs. In the long term, 6 more points will go to individual capitalization, when in the original Government project those 6 points went to social insurance so that Chile could catch up on the international stage and not continue to be an extreme case,” said Azócar.
Skepticism also reigns in the street: according to the latest Data Influye survey, 64% of those over 55 believe that the reform will not “definitely” solve the problem of pensions, compared to 33% who believe that it will only solve it “in part” and 1% who are very satisfied.
The only ones who voted against were some of them from Chile Vamos and the deputies of the different far-right parties in Parliament, opposed to any distribution system.
The leader of the far-right Republican Party, José Antonio Kast, who lost to Boric in the 2021 elections, charged against the reform in X for “taking away from workers one of their most precious assets, the right to property over their savings” and warned that he will repeal it if he manages to come to power in the elections at the end of the year.
International
FBI Says It Disrupted Alleged Plot Targeting White House During UFC Event
The Federal Bureau of Investigation (FBI) announced Tuesday that it had disrupted an alleged plot to attack the White House during a major Ultimate Fighting Championship (UFC) event held in Washington over the weekend.
FBI Director Kash Patel said the threat was identified on June 10 through a joint investigation involving multiple law enforcement agencies. According to Patel, swift action by authorities led to the arrest of several suspects before the alleged plan could be carried out.
“On June 10, the FBI and our law enforcement partners became aware of a potential threat targeting UFC America 250 in Washington. Thanks to the rapid response of the FBI and our partners, multiple individuals are now in custody, and the alleged attack plans were stopped before they could be executed,” Patel said.
He emphasized that the operation demonstrated the ability of security agencies to detect and prevent potential threats at large public gatherings. Patel added that the investigation remains ongoing and that additional details will be released as court proceedings move forward.
According to reports from U.S. media outlets, five individuals have been arrested so far. The suspects were identified as Tycen Proper of Ohio, Daniel Eskridge of Missouri, Abraham Hermosillo Álvarez of Nebraska, and Bryan Omar Roa and Michael Alan Thomas, both from California. Authorities are also investigating the possible involvement of 18 additional individuals.
Investigators allege that the plot involved the use of drones equipped with explosives to target buildings near the sporting event. The plan reportedly sought to trigger a mass evacuation and direct attendees toward areas where snipers were allegedly positioned. Authorities further claim that a second phase of the operation included an attempted assault on the White House.
The U.S. Secret Service confirmed that it worked closely with the FBI throughout the operation. Secret Service Director Sean Curran stated that security teams conducted extensive efforts to identify those involved and eliminate any threat to attendees and protected facilities.
The investigation reportedly uncovered communications conducted through the messaging application Signal, where several suspects allegedly discussed details related to the planned attack. A forensic analysis of one of the seized mobile phones revealed at least 23 users participating in conversations connected to the alleged planning activities.
Court documents also indicate that some of the suspects allegedly intended to target U.S. political figures. Among the reported targets were members of Congress who had received contributions from the American Israel Public Affairs Committee (AIPAC). Investigators further stated that one of the primary suspects had posted antisemitic messages and expressions of support for Adolf Hitler on social media, evidence that is now part of the ongoing judicial investigation.
International
Brazil helicopter crash in Rio de Janeiro kills six, including pilots and international figures
The Rio de Janeiro Civil Police confirmed on Monday the identities of three of the six victims killed in a helicopter collision that occurred the previous morning in the Recreio dos Bandeirantes neighborhood.
All three identified victims are Brazilian nationals: the pilots of the aircraft, Charles Marsillac and Alexandre Souza, and music producer Lucas Brito.
The identities of the three foreign victims have not yet been officially confirmed. They include U.S. singer Oliver Tree, Argentine YouTuber Gaspar Prim—known online as “Gaspi”—and Argentine producer Lucas Vignale, all of whom were listed on the flight manifest.
According to police, forensic experts from the Legal Medical Institute have already collected DNA samples in order to identify the foreign victims, whose bodies were severely burned.
One of the helicopters crashed into a private parking lot, triggering a fire that destroyed around twenty electric vehicles. That aircraft was carrying the pilot and four passengers, including the three foreign nationals.
The second helicopter, which had only the pilot on board, crashed approximately 100 meters away from the first impact site.
Rio de Janeiro’s deputy mayor, Eduardo Cavaliere, stated that both helicopters were operating transport flights toward Angra dos Reis on the Rio coastline and toward the mountainous region of the state.
Oliver Tree, 32, was in Brazil as part of an international tour. The artist, known for songs such as “Life Goes On” and “Miss You,” had performed to a large audience in São Paulo a week earlier and was scheduled to continue his tour in Europe.
Argentine content creator Gaspar Prim, 23, had built a following of more than two million on social media platforms, gaining popularity for humorous and often controversial video productions that had occasionally been removed by hosting platforms.
International
Mexico and U.S. Launch New Bilateral Security Group to Combat Fentanyl and Organized Crime
The governments of Mexico and the United States officially launched the Bilateral Implementation Group (BIG) on Friday, a new initiative aimed at strengthening cooperation on security issues and enhancing joint efforts against transnational crime.
In a statement, U.S. Ambassador to Mexico Ronald Johnson announced that he and Deputy Foreign Minister Roberto Velasco addressed officials from both countries who will lead what he described as a “new phase of bilateral cooperation.” The initiative seeks to curb the flow of fentanyl and other illicit drugs, illegal firearms, and human trafficking across the shared border.
Earlier this week, Mexico’s Ministry of Foreign Affairs had confirmed that senior security officials from both nations would meet in Mexico City on June 12 to review and advance existing cooperation agreements.
Through social media, Ambassador Johnson explained that the new bilateral group is designed to improve coordination between the two governments by placing greater emphasis on implementation, accountability, and measurable results. The effort will also focus on combating transnational criminal organizations operating across North America.
“The participation of 15 U.S. government agencies, working alongside their Mexican counterparts, reflects the seriousness of this effort and our shared commitment to delivering measurable results,” Johnson said.
The ambassador also highlighted several achievements that he attributed to ongoing bilateral cooperation. According to Johnson, maritime drug trafficking into the United States has declined by more than 95 percent, while overdose deaths have fallen by 35 percent.
He further noted that Mexican authorities have seized more than 400 metric tons of illegal drugs and dismantled over 2,300 clandestine laboratories as part of their efforts to combat organized crime and narcotics production.
The launch of the Bilateral Implementation Group marks the latest step in the security partnership between Mexico and the United States, as both countries seek to address shared challenges related to drug trafficking, arms smuggling, human trafficking, and the activities of criminal networks operating across the region.
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