DistantNews
Support us
🇨🇱 Chile /Sports

Multifunds system to end as AFP members are automatically transferred in April

From Cooperativa · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • Chile will replace the current AFP multifunds system with 10 generational funds beginning in April 2027.
  • Members will be transferred automatically according to their age and will not need to file paperwork.
  • Pedro Pizarro said administrators will create the age-based investment cohorts and notify members of their assignment.

Chile’s AFP members will not need to take any action when the multifunds system ends in April 2027. Their savings will be transferred automatically into new generational funds based on their age.

Pedro Pizarro, president of the Previsional Advisory Council, explained the change on El Diario de Cooperativa. Asked what procedures members would need to complete, he replied: “Nothing. You will be notified, because this is based on age, and age is information that each of us is known to have.”

Nothing. You will be notified, because this is based on age, and age is information that each of us is known to have.

· Pedro PizarroHe explained that AFP members will not need to complete any paperwork during the transition.

The new system will create 10 groups, or age-based investment vehicles. Each administrator will establish the cohorts and place members in the group that corresponds to their age. As Pizarro put it: “The administrator one is with has to create these 10 cohorts, which are basically these 10 investment vehicles, and each person will be incorporated automatically into the one that corresponds to their age.”

The reform will eliminate the existing A, B, C, D and E multifunds, under which members can currently choose where to place their mandatory savings and move them between funds. Members will instead be assigned automatically to one of the 10 generational funds.

The administrator one is with has to create these 10 cohorts, which are basically these 10 investment vehicles, and each person will be incorporated automatically into the one that corresponds to their age.

· Pedro PizarroHe described how administrators will assign members to the new generational funds.
About this summary

Originally published by Cooperativa in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog