The Chile Financial Market Commission has opened a consultation on a proposed additional clause for life annuity pensions that would let old age and disability pensioners receive a lower pension for a predetermined period before switching to a fixed, increased lifetime pension amount denominated in Unidades de Fomento (UF). Under the proposal, insurers would pay a reduced amount during an initial period running from the start of the life annuity policy until a date selected by the pensioner, based on the amount offered through the System of Consultation and Offers of Pension Amounts (SCOMP). From the month specified in the policy, the pension would increase by a percentage chosen by the pensioner and then be paid for life. The clause would be available only to old age and disability pensioners, and only for immediate life annuities (with or without immediate programmed withdrawals), and could be contracted only together with life annuities that include guaranteed payment timeframes. Comments can be submitted until February 28, 2025. If approved, the clause would be available once SCOMP has been adjusted accordingly.
Chile Financial Market Commission 2025-01-06
Chile Financial Market Commission launches consultation on a delayed and lifetime pension increase clause for life annuities
The Chile Financial Market Commission is consulting on a proposed clause for life annuity pensions allowing old age and disability pensioners to receive a lower pension initially, followed by a fixed, increased lifetime pension in Unidades de Fomento (UF). The clause applies to immediate life annuities and requires guaranteed payment timeframes. Adjustments to the System of Consultation and Offers of Pension Amounts (SCOMP) are needed for implementation.