SANTIAGO, (Reuters) – The Chilean government is set to send a bill reforming the controversial private pension system of Chile to Congress next year. This was announced by Mario Marcel, Finance Minister.

During the protests in 2019, one of the most pressing demands was to reform the Pension Fund Administrators (AFP) system. The system’s low-paying retirements is one of the most common complaints.

Gabriel Boric (leftist president) proposed to eliminate the private system and replace it with a public system. Marcel, however, avoided specific details in a presentation in front of deputies. 

He pointed out that the present system has a low contribution rate from employees and businesses, compared with other countries. The finance minister said that the government will initiate a “social dialog” in order to determine the principles that would govern a reform.

Marcel stated, “From there we will work on reform projects that can reach Congress within the next year.”

“We do not want the consultation process to last more than two months. We are conscious of how anxious it can be to see a final proposal.

To help families during the pandemics, Congress approved three partial withdrawals from pension savings. A new withdrawal is also being considered.

Boric’s government came to power March 11th and has an ambitious agenda that includes promises of social reforms, while also struggling with a slowing economy.

(Report by Fabián Andrés Cambero,; Edited by Natalia Ramos and Alistair Bell)