Chile Moves to Reform presidential Pensions, Eliminate $12 Million Monthly Stipends
A bill seeking to regulate the lifetime stipends received by former Chilean presidents has been approved by the Constitution Commission of the Chamber of Deputies and Deputies, possibly ending a controversial benefit currently valued at $12 million per month.The legislation aims to balance the tradition of supporting former leaders with growing public concerns over fiscal obligation and equitable resource allocation.
The initiative, dispatched to the full chamber on Thursday, August 22, 2025, would establish a system where the diet – a monthly allowance – begins after a president’s term concludes, irrespective of age. According to the commission’s president, Jorge Alessandri, the core principle is to provide support after service, not during potential future political endeavors.
A key provision of the bill focuses on eliminating additional assignments currently totaling $12 million per month. Furthermore, the legislation stipulates that if a former president earns income from either the public or private sector, they will forfeit the right to receive the stipend. This aims to prevent double-dipping and ensure the benefit serves as a genuine safety net for those no longer actively employed.
The bill also addresses the potential for former presidents to seek elected office. “In the event that a former president opts to postulate for a position of popular election, this will not be able to receive the diet during the three months of the campaign,” Alessandri stated. This provision seeks to avoid the appearance of using public funds to support a political campaign.
During the commission’s deliberations, opinions varied. one member, Andres Longton, emphasized the potential for savings, arguing that “today the assignments are not justified, from the point of view of the dignity of the position.” This sentiment reflects a broader public debate about the appropriateness of generous benefits for former officials.
Though, another commissioner, Raúl Leiva, cautioned against legislating based on specific cases, particularly while a constitutional reform process is underway.He noted that focusing on individual situations could undermine the broader effort to establish a stable and equitable constitution.
Leonardo Soto, another member of the commission, highlighted the effort to find a balanced approach. He commented that the commission “sought a reasonable form” to restrict the remuneration received by ex-presidents, ultimately approving a statute that “has enough common sense and respects the chilean tradition of protecting former presidents.”
The passage of this bill through the Constitution Commission represents a significant step toward reforming the system of presidential pensions in Chile. While the debate continues, the move signals a growing desire for greater clarity and accountability in the use of public funds. The bill now moves to the full Chamber of Deputies for consideration, where it is expected to face further scrutiny and potential amendments.
Why, Who, What, and How did it end?
Why: The bill was proposed due to growing public concern over fiscal responsibility and equitable resource allocation, specifically regarding the generous lifetime stipends received by former Chilean presidents. There was a perception of “double-dipping” and a desire for greater transparency.
Who: The initiative was spearheaded by members of the Constitution Commission of the Chamber of Deputies, with jorge Alessandri as the commission president. Key voices included Andres Longton, Raúl Leiva, and Leonardo Soto. The bill impacts all former Chilean presidents.What: The bill seeks to reform the presidential pension system by eliminating additional assignments totaling $12 million per month, stipulating that former presidents forfeit stipends if they earn income elsewhere, and suspending payments during election campaigns. It establishes a system where the monthly allowance (diet) begins after a president’s term ends.
how did it end? The bill was approved by the Constitution Commission on
