Social Security in Chile: History, Principles, and Framework
Historical Background
The Social Security (SS) system as we know it today has a fairly recent origin, especially in the 20th century, following the Second World War in England. However, the first social insurance was born in Germany in the 1880s. Throughout history, various forms of social assistance have existed with similarities to the current SS system.
- In ancient Rome, collegia, groups of people exercising the same trade, formed mutual associations for social assistance in events such as illness or death of members.
- During the Middle Ages, guilds provided mutual assistance in case of illness and death.
- In the 12th century, confraternities emerged, followed by guilds in the 13th and 14th centuries. These guilds engaged in activities linked to their trade and provided social welfare assistance to their members.
- In the 16th century, relief brotherhoods appeared, serving as the immediate forerunners of future mutual aid societies.
- Finally, during the 18th century, mountains of piety or pawnshops emerged, mainly in the public sector, aimed at caring for widows and orphans.
Towards the end of the 19th century, certain social insurance arose in Bismarck’s Germany. Mandatory health insurance, employment insurance, disability insurance, and old-age insurance were introduced through a series of laws between 1883 and 1889.
Following the First World War, the Treaty of Versailles (1919) created the International Labor Organization (ILO), for which the development of SS has been a fundamental part of its mission.
Subsequently, following the deep economic crisis that affected the U.S. in 1929 and caused serious social conflicts, President Roosevelt’s government adopted the Social Security Act in 1935. Its main objective was to promote appropriate means to counter existing disorders, especially unemployment and the negative effects of aging. This legislation marked the first time the term “Social Security” was used for a body of law, even if mainly for one contingency: unemployment.
Despite this background, it was during the Second World War (in 1942) when in England, through the work of liberal political economist Lord Beveridge, several laws were approved by the English Parliament. These laws applied modern principles of universality, comprehensiveness, and sufficiency of general benefit for all people, not just workers in subordinate social and economic risk. This created a new organized and systematic policy aimed at dealing with the effects of insecurity during the war in England and Europe.
The Social Security System in Chile
It is possible to distinguish three main stages in the origin and evolution of the Chilean SS system:
- From the second decade of the 20th century until the 1960s: Based on the German model of Bismarck from the late 19th century.
- From the 1960s until 1980: Responds to the orientation of the SS made in the Beveridge plan.
- From 1980 until today: Favors a concept of privatization of security instruments.
None of these stages has totally destroyed the previous system. Instead, a policy of continuity has operated, either retrofitting existing institutions or adding new structures. For example, the reformist action undertaken from mid-20th century largely maintained Bismarck’s social insurance schemes. Currently, the following coexist:
a) A structure of social insurance based on the German model, regarding the general extinction of the population, and in full force regarding the military sector (pension system created in response to occupational categories).
b) A set of universal social insurance with social assistance elements, responding to the design of the SS.
c) Private insurance, either unique (Pension Fund Administrators – AFP) or alternative/optional (Health Insurance Institutions – ISAPRE and National Health Fund – FONASA).
The Chilean system began to develop in the 1920s, following the criteria of professionalism of the German system. Its development was explosive and messy.
In the first stage, ending in mid-20th century, the majority of dependent workers joined pension schemes of a semi-public character, covering an increasingly wide range of benefits. Four major provident funds existed: Workers, Private Employees (EMPART), Public Employees, and Civil and Military Officials (CAPREDENA). A significant number of smaller funds were created to cover specific areas with greater bargaining power, achieving relatively better benefits for their profession. The main funds also created sub-regimes with preferences for certain sectors. By the end of the 1960s, the Chilean system had 35 provident funds and 150 different pension regimes, with applicable rules scattered across more than 600 pieces of legislation.
During the second stage of the SS in Chile, the governments of Jorge Alessandri, Eduardo Frei Montalva, and Salvador Allende focused their efforts on adopting reforms to standardize the SS system, addressing the multiplicity of existing regimes (removing distortions and privileges) and resolving the financial problems besetting the system. Success was partial. Regarding pensions, Frei and Allende achieved the consensus needed to undertake the sanitation the system required.
During the first phase of the military government, major reforms were adopted, but always with the same reformist idea of earlier governments. Reforms included the establishment of single regimes for family benefits, unemployment benefits, death allowances, and pensions. With the publication of DL 3500 in November 1980, the third stage of the SS in Chile formally began. The DL provided a pension system fully funded and administered by individual private entities. Simultaneously, health programs were reformed with the approval of DFL 3 of 1981 of the Ministry of Health (MINSAL), creating private health institutions and bringing together the highest-income workers.
Milestones of the Chilean Social Security System
While we must be clear that one can speak of SS as such only at the end of the 20th century, our history includes a set of previous events that need to be considered to understand the social and political concerns of each era.
For example, in the Laws of the Kingdoms of the Indies, it is possible to find arrangements for pensions, either in letters, supplies, orders, and instructions.
In independent Chile, Mutuals began to emerge in 1853, with the founding of the Typographical Society, led by Fermín Vivaceta.
By the late 19th century, laws relating to the retirement of staff in the State began to be made. Due to growing demands and social needs, the Insurance Act 4054 on Compulsory Labor for Sickness, Disability, and Old Age, and the Law 4055 on Compensation for Industrial Accidents were enacted in 1924.
Following the enactment of these laws, the first social welfare institutions appeared, with the Employees Provident Fund of Individuals (EMPART) being the first, through the enactment of DS 587 in 1925. The main benefits provided for employees consisted of a retirement fund with contributions from employers and voluntary contributions from employees, and compensation for years of service.
Later, in 1938, Law 6174 on Preventive Medicine was enacted, which led accident insurance to maintain preventive health services, ensuring the health of their members.
In 1952, Law 10,383 created the Social Security Service for the Welfare of Workers, and Law 10,475 was enacted. The Social Security Service incorporated self-employed and voluntary workers, granting benefits to cover sickness, old age, disability, widowhood, orphanhood, death, and access to social housing. Law 10,475 allowed employees access to total welfare.
Subsequently, several laws have been enacted, the most important being:
- Law 16,744 on Accident Insurance and Occupational Diseases (SATEP), which replaced Act 4055. It is the legal precedent of mutuality.
- Law 16,781 on Curative Medicine.
- Law 17,322 on Executive Charge Imposition (current).
- DL 603 of 1974 on Single System of Severance Allowance.
- Law 18,833 on ISAPREs Superintendency.
In 1980, Chile produced a major reform of the pension system with the enactment of LD 3500 and 3501 on pension contributions, radically changing the prevailing SS system. Substantial changes can be summarized as the advent of an individual capitalization system, moving from a solidarity-based system to one of subsidiarity.
Normative Sources of the Chilean Social Security System
To better understand our SS system, it must be remembered that it has diverse sources. Each of these sources has shaped the system with its special characteristics.
In Chile, the main sources for the SS are referred to in the CPR and other legal systems.
1. Constitution of the Republic
Keeping with modern constitutional trends, our current CPR enshrines the right to Social Security (Art. 19 No. 18 CPR) and the right to Health Protection (Art. 19 No. 9 CPR) as constitutional guarantees.
Without describing the contents of the right to Social Security, the CPR merely indicates that the action of the State will be aimed at ensuring access for all residents to enjoy basic uniform benefits, granted through public or private institutions (Article 19 No. 18 inc. 3 CPR). Thus, the State is assigned a duty of supervision.
In health, the CPR instructs the State to secure free and equal access to promotion, health protection, recovery, and rehabilitation of the individual, coordinating and controlling actions related to health and ensuring the implementation of these actions, whether provided through public or private institutions. Thus, the State recognizes individuals’ right to choose a health system, whether public or private.
Whether in terms of Social Security or Health, the Act authorizes the establishment of compulsory contributions, removing a possible objection based on our constitutional provision which prohibits the imposition of taxes earmarked for specific purposes.
The constitutional provisions described above are characterized by being markedly terse and aimed at institutionalizing the introduction of private management methods in the field of Social Security (a system designed to introduce private actors in the SS, e.g., Compensation Cases Family Allowance – CCAF).
Regarding the normative development of the right to Social Security, the CPR provides that the definition of core subjects on SS requires laws that are unique to the President of the Republic’s initiative and need for approval by an absolute majority of senators and deputies (Arts. 19 No. 18 inc. 2, 63 No. 4, 65 No. 6, and 66 inc. 3 CPR).
Apart from what has been said, we cannot forget the rule of Art. 5 inc. 2 CPR. From the moment this limitation is included, it means that all rights on SS that may be reputed to be essential for the human person and have been enshrined in declarations, covenants, conventions, or treaties binding on Chile acquire constitutional status, feeding and reorienting constitutional guarantees in this matter.
2. Other Sources
2.1. Regulations issued by the President of the Republic in exercising its regulatory power.
From the CPR, Laws, and Regulations, within the SS system are general instructions.
2.2. Opinions on specific situations from the Comptroller General of the Republic (CGR), the Superintendency of Social Security (SUSESO), the Superintendency of Pension Fund Administrators (SAFP), or the Superintendency of Health (SUPSAL), which are binding on administrative agencies under the control of such bodies.
2.3. Agreements concluded by the International Labor Organization (ILO), ratified by Chile and in effect.
Also sources are conventions established by the ILO and ratified by Chile, among which are: ILO Conventions 35, 37, and 121.
2.4. Collective Labor Conventions
Finally, although to a lesser extent, collective labor agreements are often sources of supplementary rights to Social Security, generally referred to the social services field.
Concepts of Social Security
Humberto Podetti, in his book *Social Policy*, states: “By Social Security, we mean a set of measures and techniques regulated by legal norms on the basis of social considerations, aimed at freeing people from the oppression of matter, through the provision of benefits whenever social contingencies are set up which would adversely affect the living standards of the protected persons.”
Another author claims that Social Security is a set of rules, principles, and techniques designed to meet individual needs arising from certain social contingencies rated as socially protected.
Some authors point out that there has been a transition from the concept of Social Insurance to Social Security, as the personal scope of coverage against risks has been extended. This has happened since the various social insurances were established only for employees of industry and low-income workers, moving towards those most in need of protection without foresight through social assistance. This allows for easier technical organization, even for sectors that wish to understand increased performance through contributions or additional contributions.
A key aspect of Social Security is its comprehensiveness, always tending towards universality. This idea, together with sufficiency to eliminate the needs of the population, emanates from the Beveridge Report and currently forms the principles of Social Security.
Principles of Social Security
It has been concluded that Social Security, as a policy of the State, must be oriented by a set of principles that should guide all decisions taken to make it operational and ultimately result in laws, regulations, or special instructions.
These principles set out guiding values and must always be present in the construction and deployment.
The principles of Social Security are:
- Universality
- Integrity or Sufficiency
- Solidarity
- Unity
- Subsidiarity
1. Principle of Universality
This principle looks at the extent or coverage that Social Security reaches in terms of the beneficiaries it protects (subjective view) and the contingencies or social risks covered by these benefits (objective view).
From this principle, it is estimated that Social Security should cover all people for all contingencies, regardless of their cause.
Therefore, for the subjective view, it is of the essence of Universality to avoid discrimination of subjects to whom Social Security must benefit by:
- Age
- Sex
- Nationality
- Race
- Social stratum, etc.
For the objective vision, Universality aims to understand as many contingencies or social risks that come from the following facts:
- Diseases
- Maternity
- Disability
- Aging
- Death
- Survivorship
- Orphanhood
- Occupational accidents and occupational diseases (ATEP)
- Unemployment
- Dependents
2. Principle of Integrity and Sufficiency
This principle refers to the quantity and quality of benefits and services provided by Social Security. This means that all benefits, regardless of their class, should be sufficient to meet the needs arising from the respective social contingency and capable of resolving the present case.
3. Principle of Solidarity
This principle recognizes the need to contribute to overall compliance with the principles and purposes of Social Security, putting it at the service of the person who requests it.
According to Professor Patricio Novoa, this principle manifests itself as follows:
a) It is a community-wide effort made for its own benefit.
b) All members of a society should help, each according to their abilities and possibilities.
c) The individual effort of each person should be considered as a requirement of the common good and not as a benefit prior to then give the body managing the taxable person.
Finally, an important effect of the application of this principle is the redistribution of national income.
4. Principle of Unity
The guiding principle of Social Security primarily looks at the organic sense that management should have, by the State, regarding the rights, obligations, and institutions that govern it.
An organized and efficient administration of Social Security ensures compliance with the aims it pursues.
5. Principle of Subsidiarity
This principle implies that the State should only play the role that individuals or groups are prevented from making in society. This clearly implies that private initiative must become more dynamic and participatory, leaving the State for those great national tasks and as the great guarantor of compliance with the Common Good.
This principle is strongly present in our CPR. Indeed, since the 1980s, Chile’s private system of Pension Fund Administrators (AFP) and Health Facility (ISAPRE) began to operate, giving a clear and precise step towards subsidiarity of the State in the area of Social Security, subject to a combination of elements with Solidarity.
Population Structure and Coverage of the Chilean Social Security System
1. Structure of the Chilean Social Security System
Despite the extensive regulation of the legal system and the complex institutional fabric administering it, it is possible to identify the regimes that make it up. Some of the existing regimes serve more than one contingency. Similarly, at the institutional level, some entities manage more than one system.
The main regimes that can be identified in the system are:
1) Health Regimen:
These include medical benefits or healthcare, directly or through bonuses and loans that finance care for public, private, or charitable purposes, and medical and economic benefits in the form of subsidies for workers temporarily disabled due to illness, accident, or motherhood.
The benefits identified are limited to claims of common origin, since those of occupational origin are discussed in a separate regime: Accident Insurance and Occupational Diseases (SATEP). In this area, a general public system operates for the whole population (FONASA), but people can avoid this by joining the state system through a contract with any ISAPRE, which should ensure the basic provision of public and may give other performance-enhanced or complemented with more input or quotation.
Law 19,996 of September 3, 2004, created a system of explicit guarantees for universal access, several for both the public and private sectors, setting various statutory benefits and guaranteed for members with terms of care, procedure, and protocol delivery of medications. This law set a timetable for progressive disease coverage that have funding from the national budget for public service providers and should be incorporated into the performance of ISAPREs.
2) ATEP Regimen:
It consists of general rules applicable to all workers. This system covers health benefits, subsidies, allowances, and pensions (Law 16,744).
3) Unemployment Protection Regimen:
Unemployment Insurance, under Law 19,728 of May 14, 2001, is in force since January 1, 2002, and is applicable to all workers covered by the regulations of the Labor Code (LC). There is also the severance allowance applicable to workers in the public or private sector who are not covered by unemployment insurance (Decree No. 150 of 1981), as well as training and employment status under Law 19,518.
4) Family Program:
It includes a unique system of family benefits such as family allowances and maternity grants to employees, grants, and pensions assigned to various administrative agencies, contained in Decree No. 150 of 1981, and a family allowance system targeted at assistance to poor people established by Law 18,020 of 1981.
5) Old-Age Pension, Invalidity, and Death Regimen:
These regimens include:
a) The set of traditional pension schemes or old Law 10,383 (former Obrero), Law 10,465 (ex Private Employees), and the SFD 1340 bis 1930 of the Ministry of Social Welfare for government officials, operated by the Former Welfare Cases and professional segments that were fused to the Institute of Social Security – INP (now Pension Security Institute – PSI).
b) The system of individual capitalization DL 3500, 1980, operated by the AFP.
6) Allocation Scheme for Death:
Composed of death benefit or help with funeral expenses for families of retirees and deceased members.
2. Population Covered by the Chilean Social Security System
Based on the description made by the SS system in Chile, we can distinguish the population covered by the same in the different regimes.
Shares purely assistance, namely the welfare pension and family allowance only, target indefinitely to all people, calling on recipients because of their extreme poverty. The same applies to the overall training activities and health activities directed at the whole population (prevention campaigns, health education, vaccinations, etc.) and healthcare to the indigent care addressed.
The other benefit is the worker’s affiliation to a certain regime, which does not necessarily mean that this is a contributory regime.
Example: A person must be affiliated to an AFP and ISAPRE or FONASA to require payment of family allowances, or be registered in their county before requesting assistance pensions.
The regimes of family benefits and unemployment allowance, originally only contributory, are now funded entirely by the State, and their benefits have assistentialism features. Thus, family allowances favor those with lower incomes, and the amount of unemployment benefits can only be described as caring. Other regimes are properly contributory, such as retirement contributions, health, and unemployment insurance.
The system covers, theoretically, all employees. For independent workers or self-employed, membership is voluntary for pensions.
Affiliation to the pension scheme involves being placed under private or public health.
In terms of family benefits and ATEP, only small groups of workers are considered independent or self-employed.
The unemployment benefit scheme excludes self-employed individuals.
In the case of employees, the obligation to recruit the worker falls first to the worker himself, and if that does not correspond, to the employer.
3. Synthesis: Population Covered by the Chilean Social Security System, Depending on the Existing Regime
A) Disability, Aging, and Survival
We must distinguish between contributory schemes and welfare regimes of invalidity, old age, and survival.
A.1) Contributory Pension Schemes for Invalidity, Old Age, and Survival
We must subdistinguish:
A.1.1) Traditional Social Security System
The INP (now ISP), which reported active member contributions under the former provident funds prior to 1983, did not choose to join an AFP.
We also find in this system the Fund of National Defense (CAPREDENA), which affiliates military officials of the 3 branches of the Armed Forces, and the Carabineros Forecasting Division (DIPRECA), which does the same with police personnel (Carabineros de Chile, Investigations Police, and Gendarmerie).
A.1.2) New Social Security Regime (System of Individual Capitalization Pension)
Compulsory membership in any AFP is required for dependent workers who have started work activity from January 1, 1983.
Self-employed individuals who started their careers before 1983 could elect to remain members of the old system or join the new system.
Self-employed individuals voluntarily join the scheme and also trade on a voluntary basis.
A.2) Health Systems of Disability Pensions and Old Age
This system covers the entire resident population with a minimum of 3 years in the country. It also includes the homeless or those without means.
This scheme does not include survivor’s pensions but does include a death allowance.
B) Sickness and Maternity
The Chilean system leads us to distinguish between the state and public system and the private regime.
B.1) Public Scheme of Sickness and Maternity
It includes as members the following workers:
a) Dependent on public sector workers and private sector.
b) Self-employed members of a pension scheme.
c) Workers subsidized by unemployment or by common or occupational incapacity.
d) Pensioners of contributory schemes.
The beneficiaries of this scheme, besides the members, are the following persons:
a) Causing family allowances.
b) Beneficiaries of pension and welfare benefits for single-family allowance.
B.2) Private System of Sickness and Maternity
It includes as members all who have signed a contract with any ISAPRE. This contract is of indefinite duration, subject in each annuity to the member’s right to terminate and the ISAPRE’s right to propose new conditions for the following period. These new conditions must not be discriminatory, and if not accepted by the member, the ISAPRE can offer alternative plans without worsening coverage already contracted.
Upon termination of the contract, health is not renewed, and the participant is automatically affected by the public system (FONASA).
The health contract should be seen as recipients at least to the same people who would have that capacity in the public system.
C) Unemployment
We must distinguish 3 regimes:
C.1) Unemployment Insurance
It comprises the following persons:
a) Private sector dependent workers governed by the rules of the Labor Code.
b) All employees affected or governed by a special statute which is additionally governed by the Labor Code.
Example: Teacher Statute, Arts. 87 ff. Subsidized private sector teachers have a special status which refers additionally to the Labor Code.
Applies to all recruited after January 1, 2002, and for those hired prior to joining voluntarily, notifying your employer 30 days in advance.
Excluded:
a) Employed in private homes.
b) Subject to a contract of apprenticeship.
c) Children under 18 years.
d) Total disability pension or old age.
C.2) Training and Employment Scheme
It comprises the following persons:
a) Workers in activity.
b) Unemployed:
- Cesantes, and
- Persons seeking work for the first time.
C.3) Unemployment Allowance Scheme
It comprises the following persons:
a) Workers dependent on the public or private sector.
b) Small groups of employed persons.
C.4) Family Benefits
We must distinguish between the Pension Scheme and the Assistance Scheme.
C.4.1) Retirement System of Family Benefits
It includes the following categories:
a) Workers dependent on the public or private sector.
Small groups of employed persons.
b) Subsidized by common or occupational incapacity or unemployment.
c) Contributory Pensioners. In the case of a pensioner’s widow or partner, only to retain the benefit the deceased had the right to.
d) Institutions recognized by the State engaged in the raising and maintenance of orphaned or abandoned and/or disabled children.
C.4.2) Care Family Benefits Scheme
Ampara to all residents, regardless of nationality, without resources or with insufficient resources. Gives a family allowance and maternity allowance.
C.5) ATEP (Law 16,744)
In this case, there is only one employer contributory scheme.
It comprises the following persons:
a) Employed persons, including apprentices.
b) Workers at the Civil Administration of the State, centralized and decentralized
Employees of Institutions of Higher Education, State
Employees of Municipalities
Workers at the CGR
Employees of the Judiciary
Workers of the National Congress.
c) Self-employed and family workers are incorporated into the insurance issued by the President of the Republic DFL.
d) Students must perform work that makes a source of revenue for the respective campus. This sector was incorporated into the Insurance Law by DS 102, 1969.
e) Students of fiscal institutions or individuals, which are governed by special rules of the DS 313, 1973.
Administrative Organization and Financing of the Chilean Social Security System
1. Administrative Organization
As noted, the administrative organization of the SS system is particularly complex and messy, since the last reforms in place to readjust the system have added new structures.
Originally, the system was built from semi-public institutions or provident funds, which comprised workers segmented by profession or trade. Each Provident Fund was versatile and multifunctional, in that it met all the contingencies contemplated by the system, structured healthcare except in state health services for the homeless, workers, and the military sector, operating in parallel with a system of medicine free choice for employees controlled and subsidized by the State. The full membership of an employee to the system was produced with the Provident Fund of his professional sector which should join. Alternatively, the possibility for companies to operate on family allowances through Compensation Funds Family Allowance (CCAF) was created, formed by the voluntary accession of enterprises with the participation of workers.
The CCAF, originally designed for the labor sector, was universalized from the 1970s, realizing the generality of workers and can assume, in addition to family benefits management, administration of benefits such as incapacity benefits, unemployment benefits, and allowances for death. CCAF participation declined the participation of provident funds fused to the INP yesterday and today at IPS, mainly because the whole CCAF clump more membership than the IPS, extending the range of advantages for workers of adhering companies (e.g., Social Credit, Credit Help, Credit Education, etc.).
Furthermore, Law 16,744 of ATEP allows larger companies to achieve partial self-insurance forms, while they were allowed or authorized to represent employers’ associations called Mutual Security for SATEP management. In this case, as with the CCAF, Mutuals today agglutinate significantly higher membership than those administered by the Institute of Social Security – ISS (ex – INP) in this matter.
We should note that both the CCAF and Mutuals are corporations regulated by law and do not pursue profit, which differentiates them from the PFA and ISAPREs. These last two are defined as entities that can be organized as a legal person, SA, or any other nature, society, or nonprofit, respectively.
In this table, we should add that in May 1981, the AFP were created, who receive payment as a commission on taxable income for administration, and they began to catch on pensions from January 1, 1983.
With the 1981 reform, the INP was reduced to the management of multiple pension schemes previously operated by provident funds with respect to a bounded population, and reduced extinction. With the enactment of Law 20,255 of 2008, the functions of the INP (now under any of their current names) have been strengthened and expanded.
Finally, Law 19,728 on Unemployment Insurance (SEGD) stated that it will be managed by a management company SEGD (which now corresponds to AFC Chile), a private entity whose purpose will be to manage the funds contributed by employers, workers, and the State.
1.1. Summary: Forms of Each of the Existing Regimes in Terms of its Officers, Operators, and Drivers
A) SCHEME OF DISABILITY, AGING, AND SURVIVAL
Must be distinguished:
A.1. Contributory Scheme for Invalidity, Old Age, and Survival
Must subdistinguish between Old System and New System.
A.1.1. Traditional Pension Scheme (Old System)
1) Senior Management:
– Ministry of Labor and Social Security (MTPS).
– Ministry of National Defense, with respect to CAPREDENA and DIPRECA.
2) Control:
– Superintendency of Social Security (SUSESO).
– CGR.
3) Operation:
– Administration Agencies of the State:
a) INP.
b) CAPREDENA.
c) DIPRECA.
A.1.2. Individual Capitalization Scheme Pension (New System)
.
1) Senior Management – MTPS.
2 º) Control: – Superintendencia de AFP (SAFP).
– Superintendency of Securities and Insurance (SVS),
in some respects.
– Other entities comptroller.
3rd) Operation: – AFP (SA with unique twist).
– Life insurance companies (CSV), regarding the recruitment of
Annuities and Disability Insurance and Survivorship.
A.2. CARE scheme for invalidity, old age and survival.
1) Senior Management – MTPS.
2 º) Control: – SUSESO.
3rd) Operation: – Regional Intendencias, as toallocation of benefits.
– INP, regarding the payment of benefits.
B) SCHEME OF ILLNESS AND MATERNITY.
Must be distinguished:
B.1. Public or state system of sickness and maternity.
1) Senior Management and Control – Ministry of Health (MINSAL).
2 º) Control: – SUSESO.
3rd) Operation: – Undersecretary of health care networks (subnets)
– Health Seremis.
– Health Services, regarding awarding benefits.
4th) administrative and financial conduct – FONASA.
– CCAF. In the case of workers attached to them. May intervene if they have undertaken the administration of sick pay and maternity allowance.
B.2. PRIVATE System sickness and maternity.
1) Senior Management – MINSAL.
2 º) Control: – Superintendencia de Salud (SUPSAL).
3rd) Operation: – ISAPREs.
C) Unemployment.
Must be distinguished:
3.1. Training and Employment Scheme.
1) Senior Management – MTPS.
2 º) Control: – CGR.
3rd) Operation: – National Training and Employment Service (SENSE).
3.2. Unemployment benefits scheme.
1) Senior Management – MTPS.
2 º) Control: – SUSESO.
3rd) Operation: – Public Service. For public sector workers.
– INP For private sector workers.
– CCAF In the case of the CCAF, for employees of member companies of these institutions.
3.3. Unemployment Insurance Scheme.
1) Senior Management – MTPS.
2 º) Control: – SAFP.
3rd) Operation: – Funds Management Company Severance Pay (In Chile: Chile AFC).