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Bolivia
Two administrators selected for new private pension system
Two groups have been selected to administer Bolivia's private pension system when it launches in May. The first AFP (pension fund administrator) is a consortium of the international money manager Invesco and the Spanish banking group, Argentaria. The second, Banco Bilbao Vizcaya, also a Spanish group, has a strong presence in the commercial banking, insurance and money management sectors of Europe and Latin America.
The new system differs from the Chilean and Argentinean systems in that it will consist of both a system of worker contributions and a $1.8 billion capitalisation fund made up of equity and dividend proceeds from partially privatised companies. A further difference is that the new AFPs are subject to a much more liberal regime with regard to foreign investment. Employers and employees will contribute 13% of salary to the AFPs, of which 10% will go into the capitalisation fund, 2% to a disability fund and 1% to a worker's compensation fund.
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