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31 January, 2025

Public declaration: International Federation of Pension Funds Administrators

Public declaration

  • The pension reform approved by the Chilean Congress, following a broad political agreement, represents progress in improving retirement benefits in Chile. It increases savings, preserves fund ownership, inheritability and the ability to choose who manages pension funds, while also raising contribution rates, increasing the PGU benefit amount, and introducing a new social insurance scheme.
  • The reform presents significant operational challenges that must be addressed to minimize unintended impacts on the pension system and capital markets. One of them is the transition to generational funds, which poses a major challenge for both regulators and pension funds administrators. Another key issue is the bidding process for existing members, as a poorly designed mechanism could negatively affect the functioning of the pension system.
  • As the International Federation of Pension Funds Administrators, we reaffirm our commitment to continuing our work towards pension systems that are sustainable over time and that contribute to ensuring that people receive a better retirement.

Santiago de Chile, January 30, 2025.

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