AFP: How many withdrawals have you approved to date and which projects are requesting a new release of funds in 2023?

The COVID-19 pandemic brought, in addition to irreparable human lossesa severe contraction of the world economy. In our country, for alleviate this depressed situationwere approved extraordinary withdrawals from individual AFP funds. How many have been approved to date? and what new projects are on the inkwell that request a new disbursement during this 2023? We tell you here.

AFP: how many withdrawals have been approved?

Since the start of the pandemic, A total of six AFP withdrawals of individual funds have been approved. According to data from the AFP Association, these disbursements implied the outflow of S/87,962 million between 2020 and 2022an equivalent to 10% of the Domestic Gross Product (GDP). Next, we detail the list of approved withdrawals:

• Emergency Decree No. 034-2020 April 1, 2020: established the extraordinary withdrawal to mitigate the economic impact of mandatory social isolation (quarantine). At that time, members of the Private Pension System were able to obtain a one-time disbursement of up to S/2,000

• Law No. 31017 April 6, 2020: established measures to alleviate the family economy. This law authorized the withdrawal of up to 25% of your total accumulated fundsestablishing the equivalent of 3 UIT as the maximum amount and the equivalent of 1 UIT as the minimum withdrawal amount.

• Emergency Decree No. 038-2020 April 13, 2020: established measures to mitigate the economic effects caused to workers and employers by the COVID-19 pandemic. This withdrawal of up to S/2,000 was intended mainly for workers who had entered into Perfect Suspension of Labor.

• Law No. 31068 of November 18, 2020: Extraordinarily authorized members of the Private Pension System to optionally withdraw up to 4 UITs of their total accumulated funds.

• Law No. 31192 from May 7, 2021: Extraordinarily authorized all members of the Private Pension Fund Administration System to optionally withdraw up to 4 UIT of the total funds accumulated in their Individual Capitalization Account.

• Law 31478 May 21, 2022: During the government of Pedro Castillo, affiliates of the private pension system (SPP) were authorized to withdraw their accumulated savings in their individual accounts of up to 4 UIT, equivalent at that time to S/18,400.

All these disbursements had as main argument, in the bills, to alleviate the economic situation of the population so that cover their health, food, education and financial debt needs. It should be noted that, to date, None of these initiatives are valid.

New AFP 2023 withdrawal: what do the new proposals propose?

So far in 2023, various congressmen have presented a total of five bills that pose a seventh AFP withdrawal. The latter has been presented to the Economy Commission the morning of this Wednesday March 22.

AFP withdrawal of up to 4 UIT

the congresswoman Decent street of the bench We can Peru proposes a withdrawal of up to S/19,800 (4 UIT) which, if approved, it would be carried out in three navies (2 of 1 UIT and the last of 2 UIT), as it appears in your PL. The parliamentarian has repeatedly requested to schedule the debate on her proposal as soon as possible because since she presented it more than a month ago, specifically on February 8, there are no more lights about it.

AFP withdrawal of up to 3 UIT

The second bill presented is authored by congressman Víctor Cutipa of the Peru Bicentennial bench. The legislator proposes a withdrawal of S/14,850 (3 UIT). Like the previous project, it entrusts the Superintendence of Banking, Insurance and AFP (SBS) with defining the operating procedure for the withdrawal of funds.

AFP withdrawal of 50% of funds

A third project presented by the congressman José Luis Elías Ávalos of Podemos Peru proposes releasing up to 50% of the pension funds to pay the initial purchase fee for a first property, provided it is a mortgage loan granted by a financial institution.

AFP withdrawal of 70% of funds

He Congressman Américo Gonza of Peru Libre introduced a bill on March 3 to be able to withdraw up to 70% of the AFP funds. According to the argument, the approval of a seventh withdrawal will favor the family and personal economy of more than 8 million members of the Private Pension Administration System.

Withdrawal AFP of 50% of funds for home purchase

One last AFP withdrawal proposal, for now, has been presented by the Congresswoman Patricia Juárez, from the Fuerza Popular bench, who proposes to authorize affiliates to the AFPs the use of up to 50% of the accumulated funds in their individual accounts for the purchase or payment of mortgage loanss of a home or property, provided that it is a loan granted by an entity of the financial system or a savings and credit cooperative.

AFP Retirement 2023: what is missing to be approved?

AFP affiliates They should know that there is a regular procedure so that at least one of the projects presented in Congress has the green light. In this case, the five requests that propose a withdrawal of up to S/19,800, S/14,850, 70% and 50% of funds require, first of all, to be discussed and approved in the Economy Commission.

In addition, these initiatives should be analyzed by the Work Commission, whose management group is empowered to make some adjustments to the legislative proposals. In case at least one prospers in both ruling commissions and advances to the Plenary, it will be the congressmen who will decide through their vote if they approve a seventh AFP withdrawal. After that, it will pass to the Executive for its promulgation or observation.

The president of the Economic Commission, rosangella barbaran, maintained that the issue, being delicate, should be analyzed by the technical entities so that they issue their opinion on the projects presented. From the Executive, through the Ministry of Economy and Finance (MEF)have rejected a possible approval of the release of funds, urging Parliament to “suspend” all kinds of initiatives that go along these lines.