Chilean Sistema de Capitalización Individual/Sistema de Capitalización Individual - Chilean Glossary
The Chilean 'Sistema de Pensiones' was introduced in May 1981 and replaced the 'Chilean Social Insurance' administered by the 'Instituto de Normalización Previsional'. The following benefits are payable under this scheme:
- Old-age pension - this benefit is payable to men who are aged 65 and women aged 60 who have 20 years of contributions. The rate is based on the person's contributions plus interest, less administrative fees.
- Invalidity benefit - this benefit is payable to people who have lost 2/3 of the capacity to work. To receive a partial disability benefit a person must have lost between 50% and 60% capacity to work. The rate is based on the person's salary prior to when they became disabled and whether the disability is total or partial.
- Survivor benefit - this benefit is paid to a widow or disabled widow, to children of a deceased person, or to a deceased person's parents if there are no other beneficiaries. The rate paid varies depending on whether there are or are not surviving children in the care of the widow, the age of the children, whether the surviving children are orphans or not, and whether there are any other beneficiaries.
Last reviewed: 30 April 2012