Santiago, Sep 28 (Businesshala) – Chile’s lower congressional chamber on Tuesday approved a bill that would allow citizens to make a fourth withdrawal from their pension funds, and send it to the Senate for a vote, despite opposition from the government. Gave.
The initiative passed with 94 votes in favour, only one more than the minimum required, while 39 MPs voted against it and 9 did not.
Chile’s government and central bank have warned that passing the bill will have a negative impact on the economy, as Chileans run short of funds for retirement.
Before the pandemic, Chileans were not allowed to tap into their pension funds until their actual retirement. But since March 2020 the economic damage caused by the coronavirus pandemic has prompted protests in Chile to push for withdrawals to get cash in the hands of citizens.
In total, Chile has withdrawn nearly $50 billion from its pension funds since the first law was passed.
“The money belongs to the workers, it is they who will decide in a two-year period whether they exercise this right (to return),” said Matias Walker, a Christian Democratic Party legislator.
Since July 2020, Congress has allowed three withdrawals, allowing each citizen to cash in 10% of their pension funds. This fourth withdrawal will also allow an additional 10%. (Reporting by Fabian Cambero; Editing by Grant McCool)