A Fund Owners' Committee for Every Pension Fund Administrator

Abstract

This article presents the proposal of the Mejores Pensiones para Chile group to create a Fund Owners' Committee in each pension fund administrator (AFP). Its main function would be to commission expert assessments of the quality of the services that administrator provides to its members, including financial management, administrative services, and the fees charged. Committee members would for the most part be drawn by lot from among the AFP's members, and would have to pass the Superintendency's pension advisor examination within a given period. These functions and this selection mechanism differ from other proposals and, we believe, make a great difference.