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What is the objective of the funds?

The Pension Reserve Fund is earmarked as backing for the government’s guarantee to basic old-age and disability solidarity pensions and solidarity pension contributions for low-income pensioners.

Annual withdrawals from July 2008 to July 2016 are allowed for a maximum amount equal to the returns on the fund in the prior year. After that, the maximum withdrawal amount will be equal to a third of the difference between the pension expenses of the respective year and equivalent expenses in 2008 (inflation-adjusted). After September 2021, the fund will be extinguished if the payments from the fund in the calendar year do not exceed 5% of total spending on the government’s guarantee to basic old-age and disability solidarity pensions and old-age and disability solidarity pension contributions stipulated in the respective year’s budget.

The objective of the Economic and Social Stabilization Fund is to operate counter-cyclically, receiving resources during boom periods, and paying out funds when the economic growth rate falls. This provides adequate coverage for risks derived from declines in copper prices and in the economy.