After being observed by the Executive in February of this year, the Congress of the republic decided to approve by insistence the handwritten law that authorizes a new recognition bonus for members who migrated from the Pension Standardization Office (ONP) to the Pension Fund Administrators (AFP).
In figures, they are 3.1 million people who moved from 2002 to 2021, and therefore, the contributions they made during their stay in the company will be recognized. ONP. Who else will benefit from this rule and what is missing for it to come into effect? We tell you here.
The initiative, which should be promulgated in the coming days, not only benefits those who migrated to the Private Pension System (SPP), but also reaches those affiliates who decide in the future to transfer to an AFP. For this reason, according to estimates by the Ministry of Economy and Finance (MEF), there are 1.96 million contributors to the National Pension System who would go to the private system upon learning that they will have the new recognition bonus.
This measure has been expected by thousands of ONP affiliates who switched to an AFP since early 2002 and, as a result, lost all their funds. However, it is important to emphasize that, with the update of the recognition bonus, the worker will be able to have this disbursement once he retires. For this reason, the former Minister of Economy Luis Miguel Castile He estimated that this initiative will benefit some 50,000 contributors who are close to retirement in the short term.
This measure will also benefit those affiliates who decide in the future to switch to the SPP. Photo: ONP
In summary, we show here the potential beneficiaries who will always receive the disbursement upon retirement:
- Affiliates that went from the ONP to the AFP from January 2002 to December 2021: 3.1 million.
- Current NO contributorsP who have incentives to relocate: 1.9 million.
- excoticants of the ONP (Those who at some point contributed to the public system): 2.7 million.
New Recognition Bonus: what is missing for it to come into effect?
When tested by insistence in Parliament, the president of congress has the prerogative to sign the autograph and promulgate it. After that, it must be published in the Official Gazette El Peruanoand from this phase, according to the law, the Executive has up to 12 months to grant the new recognition bonus.
“The Executive Branch, by means of a supreme decree endorsed by the Minister of Economy and Finance, within a period of no more than 12 months from the publication of the law, issues the Recognition Bonus for workers affiliated to the National Pension System, who choose to join the Private Pension System from 2002 onwards”, sees the complementary provision of the autograph of the law.
However, during that interim, it is very likely —as has happened with other laws that have a strong impact on the treasury— that the Executive branch files a claim of unconstitutionality before the Constitutional Court (TC) and everything will depend on what is resolved by this maximum organ.
New Recognition Bonus: how much impact does it have and why does the Executive reject it?
As warned by the ONPthe approval of the new recognition bond seriously jeopardizes the sustainability of the National Pension System, because it will cause massive migration of contributors to the Private Pension System, which will require a fiscal cost of more than S/40,000 million.
In addition, the lack of contributions will have a direct impact on the financing of pension payments, since the affiliates’ contributions are currently used to pay the monthly payroll to more than 630,000 insured throughout the country.
If the recognition bonus is successful, there will be a fiscal cost of more than S/40,000 millionwarns the ONP.
“The approval of this new recognition bond will aggravate this financial imbalance because it is estimated that around 4.6 million affiliates could stop contributing to the National Pension System,” said Victor Hugo Montoya, head of the ONP.
The Central Reserve Bank of Peru (BCRP) has a similar position, which states that this norm promoted by Parliament puts decent pensions in old age at risk and that it decompensates the National Pension System.
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.
