January 16, Bloomberg: Chile’s Labor Minister Jeannette Jara states the government made Chile Labor Minister Jeannette Jara said the government reached a deal with the opposition on some points for a long-awaited pension reform that would boost savings underpinning the nation’s capital markets.
The administration on Wednesday presented the Senate with amendments to its flagship proposal to raise retirement payments. The pre-negotiated points stipulate total employer contributions would be 8.5% of workers’ salaries. Specifically, 4.5% would go directly to each individual’s savings accounts.
Meanwhile, 1.5% would temporarily go toward increasing payouts for retirees who need extra money now, with those funds later being returned to current workers when they end their careers.
Part of the remaining percentage would go to women, who are disadvantaged under the existing system. A deal with the opposition on some points for a long-awaited pension reform that would boost savings underpinning the state’s capital markets.
“We have good news for Chile,” Jara told members of the Senate’s labor committee. After months of talks, “we have found points of agreement that allow us to advance the reform.”
The reform was a key election pledge of President Gabriel Boric, which explains why the government is working full speed to get it approved before the end of his term in March 2026 and why it has conceded so much to the opposition. Under the original proposal, the majority of funds from the employer levy were told to help the poor, rather than going to individual savings accounts.
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