The parliamentary caucus of the People's Party (PDG) confirmed that it is considering proposing a new withdrawal from AFP pension funds (Pension Fund Administrators). The idea is aimed at people who are out of work, at a time when unemployment reached 9.6%, the highest figure in five years, according to El Desconcierto.
According to T13, Deputy Zandra Parisi said the caucus had already met with various groups seeking access to that 10%. "We put forward proposals rather than oppose," the lawmaker said.
Parisi urged caution. According to her, the proposal "must be studied seriously," and there are various mechanisms. She recalled that for years the PDG has proposed a loan to citizens that would be repaid over time, instead of a withdrawal without repayment.
Deputy Patricio Briones added that the party is reviewing "the technical, political and economic feasibility of a possible 10% for those Chileans who are unemployed." Neither provided details on amounts, timelines or when they would introduce a bill.
The government rejected the idea. Minister of Labor Tomás Rau said the executive branch is open to dialogue and welcomes "good proposals." However, he maintained that "pension withdrawals were not good policy."
According to Rau, those withdrawals caused substantial inflation and depleted pension funds. The minister proposed a different discussion: "we need to have a discussion about policies that actually have an effect on job creation."
The precedent carries weight. Deputy Pamela Jiles championed the first withdrawal in 2020, during the COVID-19 pandemic, as assistance for families hit by the health crisis. Congress later approved a second and a third withdrawal, despite criticism from the opposition at the time.
Who gains and who loses? In the short term, unemployed people would have immediate access to cash. According to the government, future retirees pay the cost through lower savings, and all households through prices. The sources provide no figures on how much money left the system during previous withdrawals.
The debate comes as other sectors are also pressing the executive branch over unemployment. If the PDG moves forward with the initiative, it would be the fourth withdrawal from pension funds, and the government has already said it will not support it.
