1. Programmed Withdrawal:
This is the type of pension paid by the AFP charged to the member’s Individual Capitalization Account. The amount of the pension is calculated and updated each year based on the balance of the individual account, the profitability of the funds, the life expectancy of the member and/or that of his or her beneficiaries, and the current rate for calculating scheduled withdrawals. This means that the amount of the pension varies each year, decreasing over time.
In the scheduled withdrawal, the affiliate maintains ownership of his funds and can change the AFP and pension modality. In the event of his death, the remaining balance will continue to pay survival pensions to his beneficiaries and if they do not exist, the funds that eventually remain will be paid as an inheritance.
2. Immediate Life Annuity:
It is that type of pension contracted by an affiliate with a Life Insurance Company, the Company forcing itself to pay a monthly income, fixed in UF, for the entire life of the affiliate and deceased, to their beneficiaries. of pension.
In this modality, the AFP transfers the member’s pension funds to the Life Insurance Company to finance the contracted pension. Therefore, by selecting a life annuity, the member no longer owns their funds.
The life annuity, once contracted by the member, is irrevocable, so the member cannot change the Insurance Company or the type of pension.
It should be borne in mind that the affiliate can opt for this modality only if his pension is greater than or equal to the amount of the basic old-age solidarity pension”.
In this modality, the affiliate has the possibility of requesting Special Conditions of Coverage, to improve the situation of your survivor pension beneficiaries, in the event of your death
There are two Special Conditions of Coverage:
- Guaranteed period: This special coverage condition implies that if the member dies before the end of the guaranteed period, the Life Insurance Company guarantees the payment of 100% of the contracted pension distributed among his legal beneficiaries, for all the remaining time. At the end of said period, the payment of survival pensions will be made in the percentages established by law. In the event that the affiliate does not have legal beneficiaries, the payment of the guaranteed monthly income will be made to those persons that the affiliate himself has designated, and failing that, to his heirs.
- Percentage increase clause: This second special coverage condition means that upon the death of the member, the Life Insurance Company will pay his spouse and other beneficiaries the amount of the life annuity contracted, but in a percentage higher than that established by the law for beneficiaries of survival pension. This option can only be requested by the member who has a spouse.
3. Temporary Income with Deferred Life Annuity:
In this modality, the member contracts with a Life Insurance Company the payment of a monthly life annuity, fixed in UF, from a future date, leaving it in his individual AFP account. a balance for a temporary annuity, for the period between the selection of this modality and the beginning of the payment of the deferred life annuity.
Regarding the life annuity included in this modality, the member has the possibility of requesting Special Coverage Conditions
4. Immediate Life Annuity with Scheduled Withdrawal:
In this modality, the funds that the member has in his individual AFP account are divided and with them simultaneously an immediate life annuity and a pension for Programmed Retirement.
Regarding the Life Annuity that includes this modality, the affiliate has the possibility of requesting Special Coverage Conditions.
