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An additional 3% of salaries went to commission fees for the pension managers and towards disability and survivors insurance. Retirement benefits were then essentially linked to the amount an individual contributed and the rate of return of the private pension management firm. Furthermore, the government also guaranteed to fill in for the discrepancy between the minimum pension amounts (Leiva 1-3).
The new system, therefore, had fundamentally three aspects to it: the government's role, the private pension fund managers' role, and the savings of individual workers. This three tiered system allowed for different groups to share in the responsibility of Social Security, lifting the burden off of the government...
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