Chile Financial Market Commission consults on life annuity pension recalculation changes covering loss of survivor benefits and advance increase payments

The Chile Financial Market Commission has opened a four-week consultation on proposed amendments to its instructions for recalculating life annuity pensions under Decree Law No. 3,500. The proposal would add a recalculation procedure for cases in which a legal beneficiary loses entitlement to a survivor's pension under Article 5 bis, and would also allow advance payment of pension increases under the additional Deferred and Lifetime Pension Increase clause in specified circumstances. The recalculation change is tied to Article 5 bis of Decree Law No. 3,500, which the National Congress has approved and is pending publication in the Official Gazette. That provision bars a person convicted as a perpetrator, accomplice or accessory to certain crimes under the Penal Code and the Domestic Violence Act from receiving a survivor's pension when the victim is the person for whom the pension is intended. Separately, the proposal would regulate advance payments under the Deferred and Lifetime Pension Increase clause. The clause may be contracted together with an Immediate Life Annuity Policy only for old-age and disability pensions once it is added to the Pension Amount Inquiry and Offer System, or SCOMP. The increase could be paid as a one-time advance if the higher monthly life annuity payments have not yet started. The consultation will run for four weeks. The Commission has also published a regulatory report setting out the proposal's main elements.