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Chile: Bill of law on social security pensions funds reform

Main issues of this legal project are the following: (i) to increase the social security basic public fund to finance a higher retirement compensation for more unprotected people; (ii) current social security contribution withheld from employees’ salaries is 10%. The bill of law proposes to increase that contribution up to 14%, in 8 years, but meaning an employer’s cost; (iii) other entities different from current Administradoras de Fondos de Pensiones (AFP) could be in charge of administrating and managing this additional contribution; (iv) The bill of law contains incentives to increase the pension benefit when employees postpone the retirement age.