Every citizen at birth, regardless of whether they will work independently or informally, will have a guaranteed pension after at least 10 years of contributions, the AFPs propose for the pension reform.
The Association of AFPs (AAFP) presented its proposals for the reform of the pension system, which moves away from the equation the administrative role of the State and is committed to the continuity of the AFP in this market.
Giovanna Prialé, president of the AAFP, recalled that currently only 2 out of 10 Peruvians of retirement age receive a pension in the National Pension System (headed by the ONP), and therefore, 8 out of 10 do not receive a single sol. of your savings.
“In the case of the Private System, there is no minimum pension. We want the conditions to be the same in this new integrated system, in which all Peruvians who contribute 10 years have a proportional pension and those who reach 20 years, a guaranteed pension, equivalent to at least the S/583 that exist today in the public pension system“Priale said.
Thus, the minimum pension will be given from a seed capital for each Peruvian at the time of birth. This initiative would replace Pension 65 to “use state resources efficiently.”
“The seed capital will make it possible to achieve more using fewer resources. Pensión 65 represents 0.12% of GDP. We can use the same budget to build the seed capital and assign a fund to a newborn in their Individual Capitalization Account that will grow over time. It has a characteristic of efficient solidarity because it will be financed with the tax that we all pay,” he told the press.
Prialé added that in a period of 10 years, if Pension 65 is maintained, it would reach 580,000 beneficiaries, while with the seed capital, the threshold would be 5.8 million, assuming that said minimum pension is S/583 as the amount received. currently by members of the SNP.
State must contribute to individual funds
The AFPs maintain that for each sol that the affiliate contributes, the State has to give an equivalent amount until a minimum pension is achieved. Under this concept, the aim is to expand the universe of future pensioners who currently do not have a constant saving capacity, such as independent and informal workers.
In addition, they argue that each affiliate should be returned 1% of the IGV paid annually.
Prialé emphasized that the ONP would have to turn towards an individual capitalization system to form part of the range of managers that will compete to manage the contributions.
“People (affiliated with ONP) do not have an Individual Capitalization Account. And what they ultimately receive as a pension will depend on how many people are contributing (…) We believe that the public pension system could gradually migrate towards one of individual capitalization,” he concluded.
Finally, they also raise a commission for performance so that, when profitability falls, the affiliate is not harmed.
Source: Larepublica
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