pension. Private entities will have until December 31, 2023 to take advantage of this benefit. Nominal debt exceeds S/1,537 million.
The Executive Branch promulgated Law No. 31690, which was approved by the Congress of the Republic and which creates the regime for reprogramming pension contributions of the Private Pension System (SPP) for private sector entities.
In this way, the regulation creates the so-called Repro AFP-Privado, to which companies that, as of December 31, 2022, did not comply with the timely payment of the pension contributions of their workers to the SPP, may benefit.
“Private sector entities may request the rescheduling of their debt by submitting their application for foster care to private pension fund administrators until December 31, 2023,” says the rule.
The maximum term for the fractioning of the debt is 5 years. In addition, companies that opt for this benefit have the power to advance installment installments, which will reduce their interest. However, if they do not comply with the full and timely payment of three consecutive installments, they will lose the benefits obtained.
horizons for law
According to data from the Superintendency of Banking, Insurance and AFPs (SBS), until November of last year the nominal debt of the private sector to the AFPs exceeded S/1,537 million. However, if default interest is added, it rises to S/19,411 million (see infographic).
Economist Enrique Díaz points out that behind this debt are factors such as the lack of resources caused by the Covid-19 pandemic in companies, so the effectiveness of the law will depend on whether these conditions have changed to date.
On the other hand, it emphasizes that the regulation of the norm must specify who will be the entity in charge of making the collections. “If it’s the AFPs, it would be necessary to see how much effort and resources they are going to put in,” he commented.
It is worth mentioning that the Executive Branch will have a period of 90 days to regulate the law.
Judicial collection is suspended
If there is a judicial collection procedure in force, it will be suspended for the total amount of the debt accepted, as soon as the debtor proves the acceptance of the Private Repro-AFP.
The suspension will be without effect in the event that the entity receiving the rescheduling fails to pay three consecutive installments.
Source: Larepublica
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