| Date: | 2022- |
| Description: | The Universal Guaranteed Pension (PGU) is a non-contributory pension for people aged 65 and over, provided they meet the established legal requirements, regardless of whether they are entitled to a pension or even whether they have been pensioned or not. The pension is paid monthly by the Instituto de Previsión Social (IPS). |
Characteristics
| Target population: | All persons who are 65 years of age or older, who: 1) Do not integrate to the richest 10% of the population over 65 years aold. 2) Prove residence in the territory of the Republic of Chile. 3) Have a base pension of less than $1,048,200 (amount of the higher pension). |
| Geographic scale: | National |
| Targeting method: | 1) Proxy means test. Potential recepients must not have a pension targeting score higher than the established one. 2) Categorical: Residency requirements (not less than 20 continuous or discontinuous years since the applicant turned 20 years old, and not less than four years of residence in the last five years immediately preceding the date of submitting the application); age and disability condition. |
| Instrument of selection: | Social Security Data Information System and other administrative records (Internal Revenue Service, Social Household Registry). |
| Registry of recipients: | … |
| Exit strategies or criteria: | The pension is extinguished by: 1) the death of the recipient 2) permanence outside the Chilean territory for more than 180 continuous or discontinuous days during a calendar year 3) having provided incomplete, false or erroneous information to access the pension 4) becoming a member of a family group belonging to the richest 10% of the population The benefit is suspended if the recipient does not receive the pension for six consecutive months or when he/she does not provide the background information to prove compliance with the requirements necessary to maintain the pension. |
| Comments: | The Universal Guaranteed Pension (PGU) replaces the old-age benefits of the Solidarity Pillar. It is implemented in two stages. The first stage took place between February and July 2022. During this period, the same conditions required to access a Basic Solidarity Old Age Pension (PBSV) or Solidarity Old Age Pension Contribution (APS) had to be met. If the person already had PBSV or APS, the incorporation to the PGU was automatic (it was not necessary to apply for the benefit). The second stage corresponds to August 2022 onwards and incorporates groups that do not belong to the PBSV or APS, as long as they apply for the benefit and meet the established requirements. People in the DIPRECA (Dirección de Previsión de Carabineros de Chile) and CAPREDENA (Caja de Previsión de la Defensa Nacional) regimes are not included in the PGU. |
Institutionality
| Legal framework: | Law No. 20.255, Law No. 21.419, Decree No. 52 of 2022, and Exempt Resolution No. 77. |
| Responsible organization(s): | Ministry of Labour and Social Welfare |
| Executing organization(s): | Instituto de Previsión Social (IPS, ex-INP) (Social Welfare Institute ) |
| Source of funding: | State resources |
1) PGU
| Recipient(s): | All persons who are 65 years of age or older who meet the other legal requirements, regardless of whether they are entitled to a pension or even whether they have retired or not. |
| Mode of transfer: | Flat transfer |
| Mode of delivery: | Cash Withdrawal / Deposit in bank account |
| Periodicity of delivery: | Monthly |
| Recipient of the transfer: | Participant direct |
| Maximum per household: | … |
| Conditionalities: | … |
| Sanctions: | Providing, declaring or delivering false, incomplete or erroneous data or information in order to access the pension is punishable under Article 467 of the Penal Code, and the amounts unduly received must be returned to the IPS, adjusted by the CPI. |
| Comments: | The pension amount started at CLP $185,000. Exceptionally, the first readjustment was made on July 1, 2022, considering the variation of the Consumer Price Index (CPI) between February 2022 and May 2022. Currently, the amount amounts to CLP $193,917, which will be readjusted in February of each year according to the variation of the CPI. |
| Amount : | CLP $193.917 |
2) Mortuary Allowance
| Recipient(s): | PGU Recipients who are not entitled to any death allowance under any social security system. |
| Mode of transfer: | Flat transfer |
| Mode of delivery: | Cash withdrawal |
| Periodicity of delivery: | Single Transfer |
| Recipient of the transfer: | Person who has paid the funeral expenses of the direct participant. |
| Maximum per household: | One mortuary allowance per claimant, which cannot exceed 15 unidades de fomento (approx. CLP $470 thousand). |
| Conditionalities: | … |
| Sanctions: | … |
| Comments: | The amount is paid to the person who has incurred the funeral expenses, who must request the payment upon presentation of documentation supporting such expenses. The allowance is not paid if the IPS becomes aware that the member or pensioner has contracted and paid in advance for funeral services. If there are no funds in the capitalization account or if the balance of the account is less than 15 Unidades de Fomento, the IPS will contribute the difference that exists with the funds available in the account, up to the amount of the Mortuary Allowance. |
| Amount : | Actual amount of funeral expenses |
