Priority. The mission of the international entity points out that any reform proposal must be within the current fiscal framework. A mixed system would be the best option, according to specialist.
A technical mission from International Monetary Fund (IMF) visited Peru between January 24 and February 8 of this year. Among the main conclusions that were presented, he highlighted that “It is necessary to redesign the pension system to guarantee regular income and address the growing risks of poverty in old age.”
In this way, the International Monetary Fund (IMF) considered that the comprehensive reform of the pension system has become “a critical priority” after more than five early withdrawals from private pension accounts were allowed.
In addition, due to the weak financial position of the pension system, there is a need to create a social consensus on the different alternatives to capitalize the system. “Any reform proposal must be within the current fiscal framework,” he said in a preliminary way.
Along the same lines, the economist javier olivera explained, during his presentation at the Work Commission of the Congress of the Republicthat the main problem is that there is a disconnection between the pension systems that Peru has.
On the one hand, the private AFP system is not exactly a pension system, but the different adjustments that have been made since 2015 have turned it into a “compulsory savings system”, while the public system suffers from a lack of financing.
On the other side is the Pension 65 program, whose potential to make it universal is the only point on which there is consensus, since today it only covers half a million people in extreme poverty, Olivera said.
“I think it is much better to have a mixed system where the worker can have different sources of income in old age: social, contributory and individual capitalization pension”proposed the economist.
Reform proposal would be in May
In July 2022, the government of Pedro Castillo created the Multisectoral Commission to prepare the regulatory project for a new pension system that benefits the vast majority of Peruvians and allows them to access decent and universal pension coverage.
The Government of Dina Boluarte extended the term of the commission until May 31, the date on which its members must deliver their final report with their recommendations.
Source: Larepublica
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