Latest Friday March 24, the Work Commission of the Congress of the Republic rejected, with 11 votes against and 8 in favor, the first proposal that points to the reform of the pension system called Universal Integrated Pension System (SIUP). What does this initiative promoted by the aforementioned working group consist of and why has it turned on the spotlight on some right-wing benches? We tell you here.
The biggest debate had as protagonists Sigrid Bazan (Democratic Change) and rosangella barbaran (Popular Force). The left-wing legislator indicated that for the elaboration of the SIUP forecast Four technical tables were held, including the AFP Association.
For the Fujimori parliamentarian, the Labor Commission, chaired by Bazán Narro, “is playing with a very sensitive issue because it is necessary to involve all the actors.” She added that from the Executive there is a multisectoral commission and that, with respect to the Economy Commission, different technical tables are being held.
Along with the position of the orange bench, they also opposed the Popular Action initiative, Advance Country and Popular Renewalarguing that further study is needed.
At the end of the debate, Elizabeth Taipe, parliamentarian of Peru Libre, presented a reconsideration of the votewhich it was decided to schedule for the next session of the Working Committee, which would be this Friday, March 31.. This decision caused annoyance in Barbarán, who stated that the reconsideration be debated that same day; however, Bazán ruled out said request, arguing that they will present improvements to the forecast of the new integrated pension system.
What is the Universal Integrated Pension System?
The initiative proposes a system of three pillars which would include public and private fund managers. By way of precision, legislator Bazán maintained that with the creation of the SIUP no person would lose what he has already accumulated in the current system in force and He denied that it is the State that controls the funds of all people.
“No fund would be nationalized or expropriated,” he pointed out in reference to the discrepancy generated around this project and the erroneous reading that the current pension schemes will disappear, as some parliamentarians have slipped.
Let us remember that there are currently both public (ONP) and private (AFP) pension systems in which the worker is discounted 13% and 12.9%, respectively. With the proposal of the Universal Integrated Pension System, both will not disappear, reaffirmed the president of the Labor Commission.
Reconsideration of the vote on the reform of the pension system would be seen this Friday, March 31. Photo: Martin Hidalgo/Twitter
How does this initiative impact the contributor?
As detailed by the president of the Labor Commission, Sigrid Bazán, the contribution of a worker for the ONP is currently 13%, while for the AFP the contribution is 12.9%. “With our initiative, the contribution would come not only from the worker, but also from the employer and the State. The worker would no longer contribute 13%, but 9%, while the employer would contribute 4% and the State 1%”he explained.
He added that this system encourages the participation of the informal independent sector in the pension systems so that they contribute to the second pillar, which is non-contributory.
If you get the green light, the Universal Integrated Pension System It would replace current pension systems and solidarity programs, with the exception of specific pension regimes, such as civil construction, mining, among others.
The first pillar is non-contributorywhich would be in charge of the State, which would include the Pension 65, Contigo and social pension programs. The second pillar is contributory, and it is here that workers, employers and the State would contribute. AND the third pillar would be complementaryin which there would exclusively be contributions from the affiliates.
In addition, in this system, each insured would have a “Personal Pension Account“, which will be associated with the national identity document or an equivalent. This account will have two subaccounts that can be capitalized: a subaccount that is profitable in the Shared Risk Fund and a subaccount that is profitable in the Individual Risk Fund.
The proposal also contemplates a proportional pension for those with a minimum of 10 years of contributions. Meanwhile, those who contribute less than five years would receive a compensation.
Includes Universal Basic Pension
It should be noted that the proposal would establish the Universal Basic Pension of old age and Universal Basic Pension for Disability. If the measure is approved, with this system people who reach 65 years of age would receive a basic pension, which will not be less than the cost of the individual basic basket, provided they prove at least 15 years of contributions.
Contribution to the Universal Integrated Pension System would be tripartite: worker, employer and State. Photo: Andean
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.
