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News > Chile

Chile: Deputies Approve Third Withdrawal of Pension Funds

  • Chile's Chamber of Deputies

    Chile's Chamber of Deputies | Photo: teleSUR

Published 23 April 2021

Although the bill was approved, Chileans must await the Constitutional Court ruling due to Piñera's attempt to stop the third withdrawal.

Chile's Chamber of Deputies approved this Friday the third withdrawal of ten percent of pension funds to alleviate the economic crisis intensified by the Covid-19 pandemic in the South American country.

After extensive debates in the Legislative instance, the Chamber approved the bill with 119 votes in favor, 17 against, and three abstentions.

 Chilean Senate Approves Bill on Pension Withdrawal

"It is established that the funds withdrawn will not constitute income or remuneration for any legal effect and, consequently, will be paid in full and will not be subject to any commissions or discounts by the pension fund administrators," states the bill approved by the House.

Although the bill was approved by both the Senate and the Chamber of Deputies, the ten percent withdrawal has not yet been completed, as it now depends on the Constitutional Court's ruling, after President Sebastián Piñera filed an injunction to stop the third withdrawal.

The Undersecretary of the Ministry of the General Secretariat of the Presidency, Máximo Pavez, emphasized that the Executive maintains its position of appealing to the Constitutional Court because it has the role of "protecting the country's pensioners."

Given the unprecedented position of President Piñera, several social and political organizations have expressed their rejection of the attempt of the Executive to stop the third withdrawal of pension funds. Political leaders consider that with Covid-19, the popular sectors and the middle class will be economically affected.

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