Financial corporations started administering the pensions of Argentinians in 1993 and of Bolivians in 1996. Argentina and Bolivia are among only 30 countries (of the world’s 192) that experimented with privatization of their pension systems. Today, the majority of these countries are reversing the privatization of pensions. Private insurance corporations are suing Argentina and Bolivia for loss of potential profits as a result of the reversal of privatization of their pension programs. If Argentina and Bolivia lose the disputes, it means that impoverished citizens and elderly pensioners will have to compensate wealthy financial corporations. These cases affect the lives of millions of Argentinians and Bolivians.
Pension policy is not about securing profits for private insurance corporations. Pension systems exist to provide income security in old age—to ensure that older persons retire with adequate pensions.