Inspired by the success of other countries with voluntary pension schemes, Chile has taken an important step towards implementing collective voluntary pension saving (APVC, Ahorro Previsional Voluntario Colectivo) for retirement savings. The method includes major tax benefits and subsidies for employees and companies, and serves as a powerful tool for increasing employees’ loyalty to their companies.
The APVC is a collective voluntary pension saving method that permits employers to offer pension plans with different investment and coverage features, and to supplement their employees’ contributions.

APVC plans offered by institutions such as life insurance or asset management companies are generally contracts that employers conclude on their employees’ behalf, using their knowledge to assist their employees in formulating the plans. This highlights the social role of companies, which ensure that their employees’ quality of life is maintained even after the working relationship has ended.

Choices for employees
Although each company may hold as many contracts as it chooses, it is anticipated that companies will have one or two contracts each with different coverage and contribution features. It should be stressed that each employee has the right to choose whether to join such a plan. Contracts drawn up must ensure that conditions are equal for all employees included, and that no benefits favour one employee over another.

Advantages for employers

Employers obtain major advantages from being able to rely on a solid benefits platform for their employees, as this not only allows them to attract and retain the best employees on the market, but also has a positive impact on company productivity. The APVC will also enable companies to view their contributions as a necessary expense for pensions, and to manage and plan employee retirement and succession programmes at known costs.

Comprehensive services from Cruz del Sur
At Cruz del Sur, our aim is to play a key role as an end-to-end supplier of competitive asset management solutions for our clients. We offer a package that includes all APVC-related services, such as investment management, account administration, and consultancy for intermediaries, employers and employees. Cruz del Sur offers flexible APVC contract conditions, various investment models, personalised investment portfolios, ongoing consultation, and access to information via websites that enable everyone involved to manage and monitor their contracts.

Cruz del Sur provides companies with the most comprehensive employee benefits platform available.