MNI: Fed's Harker Sees Reason To Hold Rates Steady For Now

MNI BRIEF: US Policy Shift May Cause German Recession - Nagel

MNI BRIEF: China Supply Of New Homes Down In January - CRIC

MNI China Daily Summary: Monday, February 17

MNI BRIEF: President Xi Meets With Tech Leaders

MNI China Press Digest Feb 17: PBOC, Credit Demand, Huijin

EZ/UK Bond Supply Calendar: IT Piu; UK, DE, FI Due Tuesday

EZ/UK T-Bill Calendar: 6-Month ESM-Bill Auction on Tuesday

MNI: FOREIGN HOLDINGS OF CANADA SECURITIES +14.4B CAD IN DEC

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

CHILE: Lower House Gives Final Approval To Pension Reform

CHILE
BulletEM BulletEmerging Market News
  • Following the Senate’s approval of the government’s pension reform bill earlier this week, the Lower House of Congress also gave its backing last night, giving final approval to the legislation. The reform will keep the private pension funds in place, which will be responsible for managing new employer pay-ins to workers’ individual pension accounts that are equivalent to 4.5% of salaries. Another employer contribution worth 1.5% of salaries will go temporarily toward increasing payouts for retirees who need extra money now.
  • Total employer contributions will rise to 8.5% of workers’ salaries over nine years, and that period can be extended if necessary. The Finance Ministry said the reform will have a fiscal impact of around 1% of GDP once fully effective. Though not a small cost, Goldman Sachs has said that the reform is still positive as it will lead to an increase in domestic savings and improve the depth of the domestic capital market.
  • Separately, Chile’s mining group Sonami has downplayed President Trump’s pledge for tariffs on copper, saying that such measures provide no legal, economic or strategic incentives. Sonami president Jorge Riesco said that Chile has bilateral and multilateral treaties that offer safeguards against tariffs and reminded that 75% of its copper exports go to China and Asia.
208 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Following the Senate’s approval of the government’s pension reform bill earlier this week, the Lower House of Congress also gave its backing last night, giving final approval to the legislation. The reform will keep the private pension funds in place, which will be responsible for managing new employer pay-ins to workers’ individual pension accounts that are equivalent to 4.5% of salaries. Another employer contribution worth 1.5% of salaries will go temporarily toward increasing payouts for retirees who need extra money now.
  • Total employer contributions will rise to 8.5% of workers’ salaries over nine years, and that period can be extended if necessary. The Finance Ministry said the reform will have a fiscal impact of around 1% of GDP once fully effective. Though not a small cost, Goldman Sachs has said that the reform is still positive as it will lead to an increase in domestic savings and improve the depth of the domestic capital market.
  • Separately, Chile’s mining group Sonami has downplayed President Trump’s pledge for tariffs on copper, saying that such measures provide no legal, economic or strategic incentives. Sonami president Jorge Riesco said that Chile has bilateral and multilateral treaties that offer safeguards against tariffs and reminded that 75% of its copper exports go to China and Asia.