About the AFP System
New Life Annuities Law
 

 

(1) The "Unidad de Fomento" is a monetary unit that is corrected monthly according to the variation in the previous month' s Consumer Price Index (CPI).

(2) Each month the Administrators will be responsible for ensuring that the real annualised yield for the previous thirty-six months in each of the Funds is no less that the lower of the following two factors:


1. In the case of Fund Types A and B:

a) The average real annualised yield for the previous thirty-six months of all the Funds of the same type, as appropriate, minus four percentage points, and

b) The average real annualised yield for the previous thirty-six months of all the Funds of the same type as appropriate, minus the absolute value of fifty percent of that yield.

2. In the case of Fund Types C, D and E:

a) The average real annualised yield for the previous thirty-six months of all the Funds of the same type, as appropriate, minus two percentage points, and

b) The average real annualised yield for the previous thirty-six months of all the Funds of the same type as appropriate, minus the absolute value of fifty percent of that yield.