Chile's Pension Reform Clears Congressional Hurdles

Chile's Congress decisively approved a reform to its controversial private pension system, allowing the bill to be signed into law by President Gabriel Boric. The reform boosts employer contributions and raises the guaranteed minimum pension, marking a significant shift in the pension landscape.

In a decisive vote, Chile's Congress has greenlit a significant reform to the nation's contentious private pension system. The reform proposes notable changes aimed at enhancing financial security for retirees.

With a vote count reflecting 110 in favor and 38 against, the reform highlights an increased responsibility for employers to contribute more towards the retirement funds of their employees. This move is designed to boost the overall pension benefits for retired individuals.

Additionally, the approved reform sets a new benchmark by raising the guaranteed minimum pension. This policy shift is expected to have broad implications, ensuring a more stable income for the retired population in Chile. As the bill awaits President Gabriel Boric's signature, it symbolizes a pivotal change in the country's social security framework.

(With inputs from agencies.)