Uruguay’s private pension fund managers will remain a key part of the nation’s social security system, Finance Minister Gabriel Oddone said Thursday. Speaking with local radio station Radiomundo 1170, Oddone dismissed concerns about nationalization, stating that individual savings accounts will stay protected and under private sector administration.

The future of the pension system has drawn attention from the international community. Oddone said that potential changes to these funds were the main concern raised by investors during last week’s International Monetary Fund meetings in Washington.

The pension fund managers, known as AFAPs, manage over $25 billion for approximately 1.7 million people. These savings support local capital markets, allowing the government to reduce its dependency on foreign-currency borrowing.

The push for reform follows a 2024 vote in which citizens rejected a labor union-backed measure that sought to nationalize the retirement system.

President Yamandú Orsi’s social security commission will submit official policy recommendations on April 28. These recommendations will serve as the blueprint for upcoming reform legislation.

The government maintains that the hybrid model, which includes the social security agency BPS and private managers, will continue.

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