Chile’s Congress has enacted social security reforms to improve retirement outcomes by boosting employer contributions from 1.5% to up to 8.5% over nine years. Enhanced competition among AFPs is incentivized through new regulations, benefiting both survivors’ and disability pensions.
Chile’s Congress has recently approved significant reforms to the social security system, affecting retirement benefits for workers. The main objective is to enhance retirement outcomes by increasing employer contributions substantially and fostering greater competition among service providers. The reforms will initially implement increases in employer contributions six months after the law is officially published, anticipated shortly.
In summary, the newly passed social security reforms in Chile are poised to address long-standing issues within the AFP system by significantly increasing employer contributions and enhancing competition among fund managers. Employers are advised to prepare for the impending labor cost increases and reassess their benefits in response to these changes.
Original Source: www.wtwco.com
