The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

10.16.100 Chilean Glossary


This section contains definitions of terms applicable to the Agreement with Chile.

Australian Disability Support Pension/Disability Support Pension

The agreement limits DSP to those people who are severely disabled


For Australia, the term benefit means age pension and DSP for the severely disabled. It includes any additional amount or increase in respect of a person who qualifies for that additional amount or increase. This includes pension supplement and RA, for people in Australia, but any additional amounts are subject to portability restrictions under the SSAct.

For Chile, benefit means old age, invalidity and survivor benefits under both the old and new schemes.

Chilean Period of Insurance

This is any period a person has contributed to the social security system in Chile, as well as any period considered by Chilean legislation to be equivalent to a period of contribution.

Chilean Sistema de Capitalización Individual/Sistema de Capitalización Individual

The Chilean 'Sistema de Pensiones' was introduced in May 1981 and replaced the 'Chilean Social Insurance' administered by the 'Instituto de Normalización Previsional'. The following benefits are payable under this scheme:

  • Old-age pension - this benefit is payable to men who are aged 65 and women aged 60 who have 20 years of contributions. The rate is based on the person's contributions plus interest, less administrative fees.
  • Invalidity benefit - this benefit is payable to people who have lost 2/3 of the capacity to work. To receive a partial disability benefit a person must have lost between 50% and 60% capacity to work. The rate is based on the person's salary prior to when they became disabled and whether the disability is total or partial.
  • Survivor benefit - this benefit is paid to a widow or disabled widow, to children of a deceased person, or to a deceased person's parents if there are no other beneficiaries. The rate paid varies depending on whether there are or are not surviving children in the care of the widow, the age of the children, whether the surviving children are orphans or not, and whether there are any other beneficiaries.
Chilean Social Insurance Schemes Administered by the Superintendencia de Pensiones

The 'Instituto de Normalización Previsional' was superseded by the 'Sistema de Capitalización Individual' in May 1981. The following benefits are still payable under this scheme:

  • Old-age benefit - this benefit is paid to people who are 65 years of age and have 20 years of contributions; or to males who have 15.4 years of contributions and 50% of weeks since initial coverage; or females aged 60 who have 10 years of contributions. The rate paid is based on average monthly earnings in the last 5 years plus 1% of earnings for each 50 weeks over 500 weeks on contributions.
  • Invalidity pension - this benefit is payable to people who are declared totally or partially disabled and are under age pension age. They must have a minimum of 50 weeks of contributions, 40% of which is in the last 5 years and 50% of weeks since initial coverage. The rate paid is based on average monthly earnings in the last 5 years plus 1% of earnings for each 50 weeks over 500 weeks on contributions.
  • Survivor pension - this benefit is payable to the survivor/s of deceased pensioners, or people who had 50 weeks of coverage which covers 50% of the enrolment period, 40% of which were in the last 5 years. The rate paid is 50% of the deceased base wage or 100% of pension insured, whichever is the greater. Orphans are paid 20% of the base wage or average pension in the year preceding death. The mother of the deceased's natural children is paid 60% of widows pension.
  • Solidarity pension - a means-tested, non-contributory pension for individuals aged 65 or older who are not eligible for any other pension and who have lived in Chile for at least 20 years, including 4 of the last 5 years. A top-up component is also payable to individuals who have contributed to an individual account and whose self-financed monthly benefit (old-age or disability) is less than 150,000 pesos.
Chile's Mercy Payments/Chile's Pensions of Mercy/Pensiones de Gracia

Chilean Pension of Mercy payments (Pensione de Gracia) were established under law by the Chilean Government in the early 1990s to compensate and repair the moral suffering of the victims and relatives of victims of human rights abuse or political violence that occurred in Chile between 11 September 1973 and 10 March 1990. The payments are those made under Chilean Law 19.123 (mercy payments) and those made under Chilean Law 19.234 and its amendments (periodic mercy payments). These payments are exempt from the income test applied to all payments made under the social security laws of Australia.


The term 'entity' relates to the double coverage provisions of the agreement only. These provisions of the agreement are administered by the Australian Taxation Office and all enquiries regarding double coverage should be referred to that organisation.


In relation to Australia, legislation means the Acts that make up social security law that applies to Age and DSP. It also applies to the Superannuation Guarantee (Administration) Act 1992, the Superannuation Guarantee Charge Act 1992 and the Superannuation (Administration) Regulations.

Period of Australian Working Life Residence

Means a period of AWLR as defined in the SS(IntAgree)Act, but excludes a period deemed to be a period of Australian residence in Article 15 of the Agreement.


In relation to Australia, means Australia as defined in Australian legislation.

In relation to Chile, means the scope of application of the Political Constitution of the Republic of Chile.

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