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Pensions in Chile
The Chile Pension system (Spanish: ''Sistema Previsional'') refers to old-age, disability and survivor pensions for workers in Chile. The pension system was changed by José Piñera, during Augusto Pinochets military rule, on November 4, 1980 from a PAYGO-system to a fully funded capitalization system run by private sector pension funds. Many critics and supporters see the reform as an important experiment under real conditions, that may give conclusions about the impact of the full conversion of a PAYGO-system to a capital funded system. The development was therefore internationally observed with great interest. Under Michelle Bachelet's government the Chile Pension system was reformed again.
== Pension system of 1926 ==
A social security system was introduced in Chile in the 1920s, which included a PAYGO pension system. By 1973 the funding of the pension fund was low, though 73% of all Chilean workers paid into the system. The reason for this was that almost all workers contributed only the statutory minimum contribution, and many successfully evaded pension contributions. The poor payment record is attributed primarily to the fact that individual contributions had little correlation with anticipated pension benefits.〔Joaquin Vial Ruiz-Tagle, Francisca Castro, The Chilean Pension System, OECD Ageing Working Papers, 1998, Seite 6〕
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