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News > Chile

Chile: Piñera to Enact Historic Reform for Pensions Retirement

  • Deputies celebrate approval of pension-related reform, Valparaiso, Chile, July 23, 2020

    Deputies celebrate approval of pension-related reform, Valparaiso, Chile, July 23, 2020 | Photo: Twitter/ @ECharchas

Published 24 July 2020

The Constitutional reform was approved despite President Sebastian Piñera's resistance.

Chile's President Sebastian Piñera Friday will enact the Reform that will allow citizens to withdraw 10 percent of their savings from the Pension Fund Managers (AFP).


Chile: Senate to Vote on Pension-Related Bill

"It is the president's will to enact this Constitutional Reform according to the difficult economic situation the country is facing," the Presidency's press office informed.

Throughout the health crisis, Piñera was reluctant to modify the Constitution and facilitate the pension funds' extraction. During the discussion of the new bill, he even evaluated the possibility of forcing the Chamber of Deputies to review the law once again.

On Thursday, Piñera finally confirmed that he would enact the reform making clear his disagreement. "Congress does not always approve what I think is best," he said.

The Chamber of Deputies approved the project with over 95 votes. Subsequently, Congress ratified the Reform with 116 votes in favor, 28 against and 5 abstentions.

After the law enactment, the people will be able to voluntarily withdraw a part of their funds -from US$1,300 to a maximum of US$5,604- in the AFP, which is a private mechanism established during Augusto Pinochet's dictatorship (1973-1990).

The Reform represents a historic defeat for the Piñera's administration. The initiative was also approved by pro-government people, despite the president's resistance.

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