Peru Congress Edges Closer to Giving State Control Over Pensions

  • Committee approves biggest pension shake-up in decades
  • Fund managers warn billions of dollars of savings are at risk
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A Peruvian congressional committee approved a bill to overhaul the country’s pension system, triggering warnings from the fund-management industry that the government will get control of billions of dollars of private savings.

Lawmakers on the pension reform committee voted 6-2 in favor of legislation late Tuesday that seeks to replace the existing private and public pension plans with an integrated, government-run system. The bill will now be sent to the floor of congress for a final vote, at an undetermined date.