If I migrate from the ONP to an AFP, could I lose all my contributions?

In Peru, according to the INEI, more than 2.5 million people are affiliated to the National Pension System, administered by the Public Provisional Normalization Office (ONP). For various reasons, whether labor or economic, a citizen of that group could move to the Pension Fund Administrators (AFP) of private order. It is a process that can be carried out, but its conditions must be taken into account to avoid setbacks.

If you are interested in going from the ONP to the AFP and you have doubts, such as whether doing so will mean a danger to your contributions, then you should consider the points that we show you below.

How to go from the ONP to the AFP?

To go from the ONP to the AFP, you will first have to disaffiliate yourself from the former. In this sense, according to the entity, you must follow the following steps:

1. Request disaffiliation at the ONP.
2. Go to the offices of the chosen AFP.
3. sign the Membership Agreement.
4. Present your ID.
5. Attach a photocopy of the pay slips for the last two months.
6. Attached document of disaffiliation of the ONP.

If I change from the ONP to the AFP, do I lose my contributions?

The AFP Association indicates on its website that it is possible to go from the ONP to AFPbut that not in all cases there is the so-called recognition bonus at the time of making the transfer.

The Recognition Bond is a certificate granted by the Pension Standardization Office (ONP) in which the contributions you made to the National Pension System (SNP) are recognized before joining an AFP. Therefore, having this bonus is essential to preserve your contributions. If you don’t have it, you will lose them.

Currently there are 3 types of Recognition bonds, which include contributions up to the year 2001. If you joined the SNP after that year and want to go to an AFP, you will lose your contributions. However, if you joined before, you must take into account the requirements of each type of bonus.

Bond 1992

• Requirements. Register and demonstrate with documents a minimum of 48 months contributed to the SNP between December 1982 and November 1992.
• Profits. It recovers all the contributions made to the SNP up to November 1992 for a maximum face value of S/60,000, which is updated based on the December 1992 Consumer Price Index (CPI).

Bond 1996

• Requirements. To have joined the SPP between November 6, 1996 and December 31, 1997, in addition to registering and demonstrating with documents a minimum of 48 months contributed to the SNP between January 1987 and December 1996.
• Profits. Recovers all SNP contributions made up to December 1996 for a maximum nominal value of S/ 60,000, which is updated based on the CPI of January 1997.

Bond 2001

• Requirements. Register and demonstrate with documents a minimum of 48 months contributed to the SNP between January 1992 and December 2001 or the date on which you joined and provide evidence of the last 12 consecutive or non-consecutive remunerations, prior to the subscription date.
• Profits. Recovers all SNP contributions made up to December 2001 for a maximum nominal value of S/ 60,000, which is updated based on the CPI of January 2002.

Recognition bonus for those who migrated from ONP to AFP since 2002

Despite the fact that there is currently no Recognition Bonus for this group, in October last year the Economic Commission of the Congress of the Republic approved by majority an opinion that updates the recognition bonus for the contributors of the Pension Standardization Office (ONP ) that have migrated to one of the pension fund administrators (AFP) since 2002. The regulation, however, was not approved in the plenary session of Congress.

What is the AFP and what is its function?

The Pension Fund Administrators (AFP) “They are private institutions whose sole purpose is the administration of pension funds under the modality of personal accounts. Likewise, “they grant retirement, disability, and survival pensions and provide burial expenses,” according to what can be read on the institutional website.

What is the ONP and what functions does it perform?

The ONP is a decentralized public institution of the Ministry of Economy and Finance (MEF) and its mission is to recognize, declare, qualify, verify, grant, liquidate and pay pension rights in accordance with the law, of the National Pension System referred to in Decree Law No. 19990, of the pension regimes that are entrusted to it or have been in charge, as well as the Regime for Work Accidents and Occupational Diseases.