Chile’s senate on Thursday approved legislation allowing early pension fund withdrawals, just days after President Sebastian Pinera challenged the bill’s legality in the Constitutional Court.

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Lawmakers including several Pinera allies backed the bill permitting workers to tap as much as 10% of their retirement savings for the third time since the pandemic started, with 31 votes in favor and 11 against. The proposal will return to the lower house as soon as Friday for final votes after senators modified parts of the text. Last week, deputies approved the bill in a landslide.

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The pension bill has turned into a flashpoint with wide-ranging repercussions in one of Latin America’s richest nations. The government says fresh withdrawals will drain billions of dollars from Chile’s capital market and leave a black hole at the center of the pension system. Still, the measure enjoys ample support among cash-strapped workers hit hard by a resurgent coronavirus.

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“The government has had serious problems in delivering cash transfers and social assistance,” said Francisco Chahuan, a senator from Pinera’s National Renovation Party. “They don’t guarantee that help gets to the people who need it, due to bureaucratic issues.”

Pinera’s government on Tuesday asked the Constitutional Court to review the bill, arguing that the presidency has prerogative over legislation related to pensions. Hours later, Chileans nationwide protested the move by banging pots and pans, honking horns and chanting against the administration.

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