Chile policymakers approve fourth pension system withdrawal

Chilean lawmakers on Tuesday authorized a fourth 10% withdrawal from the country's privately run pension system to alleviate hardship resulting from the coronavirus pandemic.

Approval of the popular measure -- opposed by the conservative government of President Sebastian Pinera -- was announced via the lower chamber's Twitter account.

With November 21 general elections looming, 17 pro-Pinera lawmakers crossed party lines to approve the measure, which also must be passed by the Senate to become law.

Since September 2020, Congress has approved three pension fund withdrawals, each of 10%.

The Pinera administration says a fourth withdrawal is unmerited, arguing it will result in rising inflation and that the post-pandemic economic recovery is already underway.

Total withdrawals could amount to between $12 billion and $16 billion.

Some $50 billion have already been pulled out of the system in the first three authorized withdrawals.

Chile's unpopular, privately run retirement system is a legacy of the Augusto Pinochet 1973-1990 dictatorship.

Outrage over low retirement payouts and demands to overhaul the pension scheme were key issues fueling violent protests that shook Chile in 2019.