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Chile takes first step towards reforming private pension system

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Chile takes first step towards reforming private pension system

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The lower house of Chile’s Congress has provisionally approved a reform of its private pension system proposed by leftist President Gabriel Boric, in a rare breakthrough for the country’s polarised politics that opens the door to resolving a long-standing social demand.

Representatives voted 84 to 64, with three abstentions, to advance a bill that would increase employer pension contributions and redesign the system. The move signals it is highly likely that a reform will receive lower house backing, analysts say, though it faces significant amendments by opposition lawmakers before being sent to the Senate.

Pension reform has been high on the political agenda in Chile for more than a decade. The pension system, in which workers pay into individual accounts managed exclusively by private investment funds, forms the backbone of capital markets that have helped Chile become one of Latin America’s most developed economies.

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But the meagre incomes it generates for the working and middle class, with 72 per cent of retirees receiving less than the minimum wage, have been a central complaint in disruptive mass protests.

Rightwing and leftwing leaders have clashed over how to protect the benefits of the pension system while resolving social discontent. Proposals put forward by Boric’s two predecessors were rejected.

“This is a very important step towards taking care of both those challenges,” said Eduardo Engel, a professor of economics at the University of Chile. Final approval of the bill by the Senate would maintain individual accounts, while adding a redistribution component, he noted, leading to a “significant increase of national saving capacity”.

The current text proposes introducing new pension contributions of 6 per cent of salaries for employers, on top of the 10 per cent of salaries workers must currently set aside. Of the extra 6 per cent, 3 per cent would go to workers’ individual accounts and 3 per cent to a new solidarity fund that would top up smaller pensions.

It would also increase the minimum guaranteed pension paid out by the government to poorer people, and replace the deeply unpopular private pension administrators with a public administrator, though Chileans would still be able to choose private funds to invest their pensions. A state-run investing alternative would also be created.

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Legislators in the lower house and the Senate are likely to seek changes to some of those measures. Boric’s leftist coalition has minorities in both chambers. The vote on Wednesday relied on a group of independent and centrist lawmakers, some of whom have said they will seek to put a larger share of the extra 6 per cent of contributions into workers’ individual accounts.

Chile’s politics have become increasingly stagnant over the past decade, with the fragmentation of Congress, polarisation between the hard left and right, and a failed four-year long effort to rewrite the constitution leaving lawmakers unable to agree significant reforms.

Boric has failed to win approval for the two central planks of his agenda: pension reform and tax increases to fund social programmes. He was forced to back down from his original proposal to send the full 6 per cent additional contribution to the solidarity fund.

Patricio Navia, a political scientist and professor at New York University, said a rejection of the pension bill, which would have prohibited the government from introducing new legislation on the topic for a year, would have been hugely damaging to Boric as he approaches the midpoint of his presidency in March.

“Now he is still in the game, he could still achieve pension reform, which is something his predecessors weren’t able to do,” he said. “It won’t be the pension reform he wants, it will be one that confirms the free market model, but it is a pension reform.”

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Map: 3.7-Magnitude Earthquake Shakes the San Francisco Bay Area

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Map: 3.7-Magnitude Earthquake Shakes the San Francisco Bay Area

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Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

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A minor, 3.7-magnitude earthquake struck in the San Francisco Bay Area on Tuesday, according to the United States Geological Survey.

The temblor happened at 9:44 a.m. Pacific time about 4 miles southeast of Cloverdale, Calif., data from the agency shows.

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U.S.G.S. data earlier reported that the magnitude was 3.6.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

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Aftershocks detected

Subsequent quakes have been reported in the same area. Such temblors are typically aftershocks caused by minor adjustments along the portion of a fault that slipped at the time of the initial earthquake.

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Quakes and aftershocks within 100 miles

Aftershocks can occur days, weeks or even years after the first earthquake. These events can be of equal or larger magnitude to the initial earthquake, and they can continue to affect already damaged locations.

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When quakes and aftershocks occurred

 All times are Pacific time. The New York Times

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Sources: United States Geological Survey (epicenter, aftershocks, shake intensity); LandScan via Oak Ridge National Laboratory (population density) | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Tuesday, June 2 at 12:59 p.m. Eastern. Aftershocks data is as of Tuesday, June 2 at 1:59 p.m. Eastern.

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Promoting Advanced Artificial Intelligence Innovation and Security

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Promoting Advanced Artificial Intelligence Innovation and Security

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:

Section 1.  Purpose.  The United States continues to lead the world in Artificial Intelligence (AI) because of the enormous talent and innovation of our AI industry, and because we refuse to stifle this innovation with overly burdensome regulation.  My Administration has unleashed tremendous technological growth and economic investment in AI by slashing the bureaucratic constraints that the prior administration placed on America’s AI developers and researchers, and by instead encouraging AI innovation and accelerating responsible AI adoption across government and industry. 

Advanced AI capabilities make our Nation stronger, but also introduce new national security considerations that require coordinated action across executive departments and agencies (agencies), and components.  As these capabilities evolve, my Administration will continue to work closely with industry to ensure that the best and most secure technology is deployed rapidly to confront any and all threats to our country.  We will continue to lead an America First cybersecurity effort that enhances both our national security and our global AI dominance.

It is the policy of the United States to promote AI innovation and security by working collaboratively with the private sector to modernize government and private sector information systems and harden them against external threats; to protect American ingenuity and intellectual property from exploitation and theft by adversaries; and to cultivate America’s advanced AI-enabled capabilities.

Sec. 2.  Upgrading American Systems for Advanced AI.  (a)  Within 30 days of the date of this order, the Committee on National Security Systems shall prioritize the cyber defense of National Security Systems, as defined in 44 U.S.C. 3552(b)(6)(A), by taking appropriate and expeditious action consistent with the purpose of this order.

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(b)  Within 30 days of the date of this order, the Secretary of War shall prioritize the cyber defense of Department of War information systems by taking appropriate and expeditious action consistent with the purpose of this order.

(c)  Within 30 days of the date of this order, the Secretary of Homeland Security, through the Director of the Cybersecurity and Infrastructure Security Agency (CISA), in consultation with the Director of the Office of Management and Budget (OMB), the Assistant to the President for National Security Affairs, and the National Cyber Director, shall release Binding Operational Directives and other guidance as appropriate to:

(i)    expedite and prioritize the cyber defense of civilian Federal Government information systems in order to protect our Nation’s vital functions;

(ii)   establish or expand Federal programs and cybersecurity services that enhance AI-enabled defensive tools; and

(iii)  facilitate access to cybersecurity tools and services including, where appropriate, covered frontier models for agencies, State and local authorities, and operators of critical infrastructure such as rural hospitals, community banks, and local utilities.

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(d)  Within 30 days of the date of this order, the Secretary of the Treasury, in consultation with the National Cyber Director, the Secretary of War, through the Director of the National Security Agency (NSA), and the Secretary of Homeland Security, through the Director of CISA, shall form an AI cybersecurity clearinghouse, in voluntary collaboration with the AI industry and operators of critical infrastructure, that coordinates and deconflicts scanning for software vulnerabilities, discovers and validates such vulnerabilities, and coordinates and prioritizes remediation and distribution of vulnerability patches.

(e)  Within 30 days of the date of this order, the Director of OMB, in coordination with the National Cyber Director and the Director of CISA, shall determine whether any Federal grant programs have available and relevant funding that can be directed toward applicants developing advanced AI vulnerability detection.

(f)  Within 60 days of the date of this order, the Director of the Office of Personnel Management shall expand the United States Tech Force Information Cybersecurity Specialist hiring and placement pathways.

Sec. 3.  Secure Frontier Model Deployment.  Within 60 days of the date of this order, the Secretary of the Treasury, the Secretary of War, through the Director of NSA, and the Secretary of Homeland Security, through the Director of CISA, in consultation with the White House Chief of Staff, through the National Cyber Director, the Assistant to the President for Science and Technology (APST), and the Secretary of Commerce, through the Director of the National Institute of Standards and Technology, and in coordination with other agencies, as appropriate, shall:

(a)  develop and maintain a classified benchmarking process to assess the advanced cyber capabilities of AI models and determine the threshold at which an AI model should be designated a “covered frontier model” for the purposes of this order, sharing such assessments with AI developers and researchers as appropriate.  Such a determination shall be made by the Director of NSA, in consultation with the National Cyber Director, the APST, the Director of CISA, and other representatives of the Department of War, as appropriate.

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(b)  design a voluntary framework with AI developers through which developers would be able to:

(i)    engage the Federal Government to determine whether model(s) under development meet the designation of “covered frontier model”;

(ii)   provide the Federal Government with access to covered frontier models, subject to appropriate confidentiality, cybersecurity, insider-risk, and intellectual-property protection, use, and nondisclosure requirements, for a period of up to 30 days before they plan to release such models to other trusted partners; and 

(iii)  collaborate with the Federal Government to select trusted partners that will have early access to covered frontier models to promote secure innovation and strengthen the cybersecurity of critical infrastructure.

(c)  Nothing in this section shall be construed to authorize the creation of a mandatory governmental licensing, preclearance, or permitting requirement for the development, publication, release, or distribution of new AI models, including frontier models.

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Sec. 4.  Protection Against Criminal Actors.  The Attorney General shall prioritize the enforcement of 18 U.S.C. 1028, 18 U.S.C. 1030, 18 U.S.C. 1343, and all other applicable Federal criminal laws against anyone who utilizes AI to illegally access or damage a computer without authorization, or who utilizes AI while engaged in such illegal access to further any other crime.  This includes breaching any public or private information technology system, or employing AI agents to unlawfully access data or information that is subsequently used for a criminal or unlawful purpose.

Sec. 5.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:

(i)   the authority granted by law to an executive department or agency, or the head thereof; or

(ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

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(c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

(d)  The costs for publication of this order shall be borne by the Department of War.

                             DONALD J. TRUMP

THE WHITE HOUSE,

    June 2, 2026.

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Video: California Prepares for Governor Primary Race

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Video: California Prepares for Governor Primary Race

new video loaded: California Prepares for Governor Primary Race

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California Prepares for Governor Primary Race

On Tuesday, Californians will head to the polls to vote in the state’s primary election for governor and other offices. There are dozens of candidates for governor, but one Republican and a couple of Democrats have risen to the top of the polls.

“The focus of my campaign has been on specific, positive, practical things we can do to help people. Your first 100 grand tax free. It’s ridiculous that we have people making salaries in California that really don’t get you very far. How about a guy who’s actually balanced a budget larger than the budget of the state of California? Xavier Becerra. And so at the end of the day, it helps to have experience. It helps to know how to handle a crisis. And at the end of the day, I better deliver. I’m only working for the people of California. I have no conflicts, and so I can actually work, be completely honest, and do the thing that needs to happen, which is to take on corporate interests who are driving up the cost for Californians who can’t afford to live here anymore.

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On Tuesday, Californians will head to the polls to vote in the state’s primary election for governor and other offices. There are dozens of candidates for governor, but one Republican and a couple of Democrats have risen to the top of the polls.

By Jamie Leventhal

June 1, 2026

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