The Unemployment Fund Administrator (AFC), the company that manages Unemployment Insurance in Chile, has reported that 550,000 pensioners maintain funds in their individual accounts, which can be withdrawn in a single payment. These balances, which workers have accumulated during their working years as insurance to face periods of unemployment, can be used by people after their retirement in a process that requires the presentation of some documents certifying that the user has ended their work career.
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The AFC is insurance that is mandatory for workers hired from October 2, 2002 — those with a contract prior to that date can join the system voluntarily — which operates with labor contributions. 3% of the available remuneration is allocated to this administrator, in a percentage contributed by the employee and employer in different proportions according to the contract. The maximum contribution payment period is 11 years per employment relationship. After that, the employer continues contributing to the Solidarity Unemployment Fund while the contract is in force. Unemployment Insurance is activated and paid once the dismissal is effective.
Who can withdraw money from the AFC
The benefit is intended for retirees due to old age, total or partial disability from AFPs or Insurance Companies; pensioners from the National Defense social security funds (Capredena) or Carabineros (Dipreca); beneficiaries of disability pensions under the Work Accidents and Occupational Diseases Law; and pensioners under social security regimes managed by the Social Security Institute (IPS). All people belonging to these groups must be affiliated with the AFC and have amounts with pending withdrawals.
What documents are needed to withdraw the funds
To carry out the procedure, the AFC requires the pensioner’s valid identity card; the last pension payment slip; the pension grant certificate issued by the AFP, IPS, Insurance Company, or the corresponding institution; and the resolution granting the disability pension, if applicable.
How to withdraw money from the AFC
Pensioners who have money to withdraw must enter the official AFC website, which they can access with a password or with the Unique Key, the digital password to carry out procedures in the public sector. From there, users must select the option Withdraw pensioner balance to check if there is money available for withdrawal and the amount. Then they must complete the data and select the payment method (options include deposit into a checking, savings, or CuentaRUT account, or cash payment at Servipag or BancoEstado branches). Once the request is made, the affiliate must wait for the administrator’s response, which will notify the amount and payment date. People who cannot carry out the procedure online can go to one of the 53 AFC branches nationwide to perform the process in person.
What is the deadline to claim the withdrawal
There is no set deadline to withdraw the money once the request to the AFC is approved, as the available balance does not expire. Still, the administrator recommends pensioners to carry out this procedure. The entity has detailed that the payment is made in full only once.
Can retirees who work withdraw the balance?
Yes. The AFC has indicated that people who remain in the labor market despite having retired must inform their employer of their pensioner status to avoid incorrect payment of monthly contributions.
In which cases can the funds not be withdrawn
The Chilean Unemployment Insurance administrator has said that not all retirees can exercise this withdrawal. Some pensions, such as non-contributory pensions or pensions for temporary partial disability, among others, are not included in this benefit. Those who cannot access this withdrawal can access the insurance as an unemployed person, provided they meet some initial requirements.