Terminally Ill Law: only 1,137 people partially withdrew their pension funds

Almost a year after the entry into force of the Terminally Ill Law, the Superintendency of Pensions registers a total of 1,137 applications, of which 82% have been approved.

According to the regulator, as of May of this year, some 1,137 patients (79% men, the majority between 50 and 70 years of age), with a life expectancy equal to or less than 12 months, were able to recalculate their pension and withdraw their pension funds. as a freely available surplus, given his critical health condition.

According to the head of the Medical and Ergonomic Commissions division, Alberto Muñoz, with data as of February of this year, people were able to withdraw an average of UF 627 at one time, equivalent to $19.7 million, and obtain pensions that they averaged $500,000 for the adjustment to life expectancy allowed by law.

The rule considers 22 pathologies as causal to access the benefit. The majority of requests are for cancer (89%), followed by neurological diseases that affect physical development (3.6%), and other respiratory conditions and those associated with nephrology, with over 3% each.

Most of the cases rejected are due to the fact that they do not meet the requirement of a life expectancy equal to or less than 12 months, according to Muñoz.

However, he emphasizes that people have the option to appeal, and can even reapply at a later time. As of May, 77 appeals were registered, of which 61% were favorable to the patient.

projections

Muñoz points out that the volume of requests and approvals is explained by the greater knowledge of the Law among treating doctors, health establishments and patients.

To this is added the existence of a technical standard that avoids discretionary evaluations by doctors and facilitates the work of medical councils, entities created by law to take charge of cases. These also have support staff registered with the Superintendency.

However, the potential for use is much greater. According to the regulator, it is expected to go from the current 130 monthly requests to 250 by the end of this year, and to 2,000 per month in the future, reaching international standards of around 24,000 per year.

disability insurance

The calculation of pensions under this law with a lower life expectancy has as a minimum floor the value of the Universal Guaranteed Pension ($ 193,000), which each affiliate can raise, depending on what he wants to withdraw as a surplus.

Likewise, the calculated pension may increase if the person is subject to Disability Insurance due to illness, something that is automatically assessed under this law.

The amounts of pensions and withdrawals also consider the existence of survivors (spouse and children up to 24 years of age) and may rise or fall depending on their age, and are also subject to taxes.

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