What is Pension Fund Administrator in SAP PY-CL - Chile?

SAP Term: Pension Fund Administrator

• Component: PY-CL

• Component Name: Chile

• Description: A private institution of the new pension system in . The new pension system is based on individual capitalization and was implemented in 1981. The Pension Fund Administrator invests the money on the capital market and is entitled to compensation by means of commission paid by the affiliates. The institution is known in Spanish as 'Administradora de Fondo de Pensión AFP'.

Smart SAP Assistant

• Key Concepts: 
  A Pension Fund Administrator (PFA) is a financial institution that is responsible for managing and administering pension funds in Chile. It is a component of the SAP PY-CL Chile module, which is used to manage payroll and personnel administration in Chile. The PFA is responsible for collecting contributions from employers and employees, investing the funds, and paying out benefits to retirees. 
  
  How to use it: 
  In order to use the PFA component of the SAP PY-CL Chile module, employers must first register with a PFA. Once registered, employers must then enter the details of their employees into the system, including their salary information and pension contributions. The PFA will then manage the pension fund on behalf of the employer and employees, investing the funds and paying out benefits when required. 
  
  Tips & Tricks: 
  It is important to ensure that all employee information is up-to-date in order for the PFA to accurately manage the pension fund. Employers should also be aware of any changes in legislation that may affect their pension fund contributions or benefits. 
  
  Related Information: 
  For more information about Pension Fund Administrators in Chile, please refer to the Chilean Ministry of Labour website: http://www.trabajo.cl/pensiones/administradores-de-fondos-de-pensiones/.