/ Pension Regulator Launches Bidding Process for Key Consultancy in the Design of the New Pension Investment Regime

Felipe Cousiño, Partner

Francisca Donoso, Senior Associate

Alessandri

On June 13, 2025, the pension regulator (Superintendencia de Pensiones – SP) announced that it has initiated a public bidding process to hire a specialized consultancy that will aim to design of the target date funds (which will replace the current pension funds), reference portfolios (benchmarks) and investment performance metrics. The latter refers to a structure of penalties and rewards for pension fund managers (AFPs) for underperforming or overperforming, as the case may be, the relevant benchmark. The consultancy, though not binding, will serve as a key input for the design of the main components of the investment regime applicable to target date funds, which is to be drafted jointly by the SP and the Consejo Técnico de Inversiones (CTI). The publication is available on the Mercado Público platform, www.mercadopublico.cl, under ID 2580-14-LR25. It can also be accessed through the link https://www.mercadopublico.cl/Procurement/Modules/RFB/DetailsAcquisition.aspx?qs=i01VcevDLEznhCWbvhm3XA==

All legal entities and individuals, Chilean or foreign, that comply with the requirements established in the tender documents may participate in this bidding process. The budget available for hiring this consultancy service CL$ 444,000,000 (approximately US$ 470,000). Bids exceeding this amount will be declared inadmissible.

Interested entities should submit technical proposals that include:

1. A detailed description of the consulting team.
2. The methodological approach to be applied for the development of the study must meet the requirements contained in the tender documents. Among these, for example, the proposal must include a methodology to evaluate metrics, volatility, profitability, and risk, consistent with the pension objectives. It must also indicate the methodology to be used in the selection of market indices (replicable, liquid, representative), as well as the methodology for defining the structure and composition of the benchmarks.
3. The bidder must demonstrate that it has a previously developed a proprietary model aimed at simulating the pension savings accumulation and decumulation process, or a life-cycle portfolio composition model, which complies with the requirements established in the different phases of the project. This model must allow for the adaptation of its variables, assumptions, and parameters to the institutional and regulatory characteristics of the Chilean pension system, becoming a central tool for the phases of pension trajectory evaluation and definition of investment strategies throughout the life cycle.

Bids that do not fully comply with the service specifications required in the tender documents will be declared inadmissible.

Bidding process calendar:

The result of this consultancy will be the proposal of a new investment regime, which is expected to be published in September 2026. As of April 2027, the transition from the current multi-fund scheme to the new target date funds model will begin. This regime will include a 36-month adjustment period to facilitate the progressive adaptation of investments.