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News > Chile

Chilean Senate Approves Bill on Pension Withdrawal

  • Senate Chamber, Chile

    Senate Chamber, Chile

Published 22 April 2021

By 31 votes in favor and 11 against, this Thursday the Senate approved in principle the constitutional reform.

The Chilean Senate reported through a press release, which was approved with 31 votes in favor and 11 against, the bill authorizing members of the pension system to withdraw part of their accumulated funds.  

 Chile: 9 People Arrested In Protests for Pension Withdrawal

“The maximum withdrawal amount of is established as the equivalent of 150 development units (1 UF $40) equals and a minimum of 35 development units, in order to mitigate the social effects derived from the constitutional state of emergency of catastrophe due to public calamity decreed because of Covid-19 ”, points out the Senate. 

The message issued by the Senate specified that in the debate it was recognized that “it is not an ideal measure, but it is necessary (...). It is not easy for people to finance this crisis with their pensions, but it is what remains due to the poor response of the government ”.

"The main issue is how we face what is to come", said the Senators and the pro-government senators who gave their approval also specified that "the withdrawal has a voluntary character" and should support 'the middle class that is invisible and does not qualify for any assistance' and regretted that there was no approach from the Government 'to know the reality of the people".

On the other hand, according to the official communiqué, other congressmen stressed that the withdrawal of funds "is contradictory with the desire to improve pensions. It was qualified as 'irresponsible' 'to pretend to help the workers with their own resources, that is to impoverish them more."

"It is the government that should help. Along the same lines, the idea of 'generating a solidarity income for the pandemic financed by the State, replacing the withdrawals of the members' funds' was also raised", the Senate's informative note specified.

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