savings accounts, pension reform will increase formalization of the labor force and its by-product, pension system coverage”(Gill, Packard and Yermo, 2005: 89, 97). José Piñera—the reform leader as Minister of Labor in the Pinochet dictatorship—argued that“the main victims of the old pension sys­tem were the poor, who in principle were supposed to be the most favored by the PAYG system”(1992: 19). Firstly, the social insurance system(based on PAYG or collective partial capitalization) was never supposed to cover the poor as the basis of coverage is paid employment—the coverage of the poor was the object of social assistance; 13 secondly, the individual fully-funded system has never covered the poor; this has been achieved by non-contribu­tory or welfare programs financed by the state. Reformers neither referred directly to the role of the private system in the older-adult coverage nor in the non-contributory pensions. Methodology to Measure Coverage There are two types of pension coverage(for old age, disability, and survi­vors): a) active or contributory coverage is that of active workers, during the period they contribute to the system(the worker and, in most countries, the employer) to be entitled to a pension; and b) passive coverage is that of those who receive pensions, whether contributory or non-contributory. There are a variety of methods for calculating pension coverage. The total economically active population(EAP), the employed EAP, and the salaried EAP are used as a divisor—the employed EAP and the salaried EAP result in a greater coverage because the divisor is smaller; therefore, in this case the total EAP that pro­vides a more accurate coverage will be used. As for the older-adult population, the age of 65 years and over is commonly used, however, in countries with lower retirement age coverage is distorted; 14 for consistency, we will use 65 years of age. 13 Twenty-five years after its 1994 report, the WB(2019) recommends that, in developing countries due to informality, protection is separated from employment and focused on fighting poverty through social assistance. 14 For example, 60 for both men and women in the Dominican Republic; 60 for men and 55 for women in El Salvador; 62 and 57, respectively in Panama; and 60 for women in Chile(see Table 5). 38