translated from Spanish: Withdrawal of pension funds: How much money and in what timeframes the benefit will be accessed

President Sebastián Piñera yesterday enacted the law that allows citizens to withdraw up to 10% of their planned savings to deal with the economic crisis arising from the pandemic. The project proposes voluntary withdrawal with a maximum cap of up to 150 UF (about four million pesos) and a minimum of 35 UF (one million pesos). If 10% of a worker is less than 35 UF, he or she may withdraw up to all of your savings. The approved text explains that the withdrawn funds will not constitute income or remuneration for any legal purpose, will be paid in full and will not be referred to commissions or discounts by the AFPs. The text states that members may request the withdrawal of their planned funds up to one year after the reform was published, independent of the validity of the Constitutional Disaster State of Exception decreed by the pandemic. 50% of the funds requested by the affiliate will be delivered within a maximum of 10 working days from the filing of the application in the AFP and the remaining percentage will be paid within a maximum of 30 working days from the previous disbursement. The initiative sets the maximum withdrawal amount equivalent to 150 UF ($4.3 million or so) and a minimum of 35 UF (about $1 million). If a person has less than one million pesos in their AFP, they can get up to 100%. For example, if you have $700, you can get the $700 thousand. If a person has between $1 and $10 million, they can make a maximum of $1 million. For example, if you have $5 million saved, you can get up to $1 million. If a person has between $10 million and $43 million, they can get 10%. For example, if you have $25,000,000 saved, you can get up to $2,500,000.

Original source in Spanish

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