The Pension Reserve Fund (PRF) was established on December 28, 2006 with an initial contribution of US$ 604.5 million. It was set up in response to Chile’s new demographic scenario characterized by an increase in life expectancy and the growth of senior citizen population, adding on yet another challenge for the Government in terms of greater future retirement expenditures and the need to guarantee basic solidarity pensions to those who were not able to save enough for their retirement.

The PRF’s objective is to support the financing of fiscal obligations derived from the Universal Guaranteed Pension, the basic solidarity disability pension contribution and the solidarity disability pension contribution. In this way, it complements the financing of future pension contingencies.

According to the Fiscal Responsibility Law, modified in August 2024 by Law No. 21,683, the PRF must receive each year a contribution equivalent to the effective fiscal surplus with a maximum of 0.5% of the Gross Domestic Product (GDP).

On the other hand, and according to this same law, the amount of the PRF's resources that can be used annually will be determined based on a withdrawal rule, defined by the Minister of Finance, which must comply with two objectives: i) that the annual amount of withdrawals from the Reserve Fund is stable and predictable, and ii) that the value of the Fund and of the contributions is maintained in the long term, discounting inflation.*

*However, the Budget Law approved for 2025 establishes that if such rule is not defined by March 31, 2025, up to 0.1% of the previous year's GDP may be withdrawn from the PRF.