AFP Retirement 2023: which of the 6 bills raises a higher disbursement for affiliates?

In the Economy Commission of the Congress they rest 6 bills that propose a seventh withdrawal of individual AFP funds. Are legislative initiatives keep thousands of contributors in suspense they want to see their saved money in their bank accounts. However, from the sidewalk Executive and of the Central Reserve Bank of Peru (BCRP) have pronounced themselves to qualify as “populist” and even “madness” the proposals submitted. What condition are these in? Projects and which of all poses a greater retirement for the affiliates? We tell you here.

AFP withdrawal of up to 4 UIT

the congresswoman Digna Calle de la bancada Podemos 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 one of 2 UIT), as it appears in its Legislative Project. The parliamentarian has repeatedly requested to schedule the debate on her proposal as soon as possible because she, since she presented it on February 8, there is no progress. This PL is the one that poses a greater disbursement of individual funds.

AFP withdrawal of up to 3 UIT

The second bill 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 commissions the Superintendency of Banking, Insurance and AFP (SBS) define 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 supported 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.

The last AFP withdrawal was approved on May 21, 2022 during the government of Pedro Castillo. Photo: Composition LR/Andina

Withdrawal AFP of 50% of funds for home purchase

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

AFP withdrawal from 3 UIT

the bench of people forcethrough congressman Victor Seferino Flores Ruizpresented on Thursday, March 23, the sixth bill to exceptionally and voluntarily authorize members of the Private Pension Fund Administration System (AFP) to withdraw funds accumulated in their individual capitalization accounts. The parliamentarian proposed a withdrawal of 3 UIT, equivalent to S/14,850.

In his proposal, he points out that a new AFP withdrawal would counteract the increase in unemployment as a result of the latest social conflicts, the increase in poverty and extreme poverty, as well as the effects of inflation.

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.

Julio Velarde qualifies as “madness” if they approve a new AFP withdrawal

The president of the Central Reserve Bank of Peru (BCRP), Julio Velarde, indicated that allowing a seventh withdrawal from the pension funds of the AFPs would be “insane.” In addition, he warned that with these authorizations, promoted by the Congress of the republicthe pension system is being destroyed, and pointed out that the current circumstances do not justify the approval of new withdrawals.

“It occurs to no one that they could be withdrawing money from pension funds. The population cannot be left without pensions. There is no country that does not have a pension system. Taking all the money out is crazy, here or anywhere in the world. If you say to the worker: ‘Do you want to have the money in your hand or do you want it to go to a pension fund?’, he will answer: ‘I prefer to have the money in my hand, I prefer to spend it now’ (…)”. It really is crazy to disappear the pension system“, said Velarde, at the end of the press conference he gave on the inflation report of March 2023.