The Executive argues that the measure would have an economic impact of up to S/40,856 million. In addition, it would encourage ONP contributors to join an AFP.
The Executive Power decided to observe, on January 30, the autograph of the law that updates the recognition bonus to the contributors and ex-contributors of the Pension Standardization Office (ONP) who have decided or decide to transfer to the Private Pension System (SPP).
The initiative, which will return to committees for a new evaluation, seeks to reward the contributions of those affiliated with the National Pension System (ONP) who migrated to the Private AFP System from 2002 onwards. Previously, the cutoff for these bonds was at 1992, 1996 and 2001.
According to the Government, the autograph approved in plenary “becomes unconstitutional because it affects the protection of the pensions of the pensioner population of the National Pension System (SNP), supported by a social security model and, on the other hand, due to because affiliates who migrate to the SPP will have an Individual Capitalization Account without a fund (on withdrawing 95.5%), which means that they will not effectively receive a pension, giving rise to the social vulnerability“.
They also argue that the initiative promotes the departure of current members of the SNP, which weakens the main source of resources available to the SNP to pay for the pensions. “It generates incentives for SNP contributors to join the SPP, attracted by the option of making withdrawals from their pension fund. Consequently, the measure would end up eroding the critical mass of contributing affiliates that the pay-as-you-go system requires to cover financing of the pension payroll, the deficit currently presented by the SNP would worsen, by weakening the main source of resources (contributions) that counts for the payment of pensions”, reads the observations of the Executive Branch sent to the Congress.
What would be the impact of the measure?
According to the Executive Branch, the economic impact of the legislative initiative would amount to S/40,856 million. This is because it would include not only the recognition of contributions, via a recognition bonus, for SNP affiliates who transferred to the SPP from 2002 onwards, but also for current affiliates who have strong incentives to migrate to the SPP.
In detail, according to information from the ONP, from 2002 to December 2021, there are 3.1 million workers who were affiliated with the SNP, who made at least one contribution and later transferred to the SPP. Thus, for this concept, the impact would be S/5,855 million.
Economic impact of updating the recognition bond. Source: PCM
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
