Congress: they propose “mirror” contributions for informal pension

The Work Commission and Social Security Congress recently approved a minority opinion for the reform of the pension system after its first initiative failed.

In dialogue with La República, Sigrid Bazán, president of the group in question, pointed out that the text is similar to the one rejected by her colleagues previously, although some modifications were made to broaden the scope of the Universal Comprehensive Pension System (SIUP).

Within the three pillars of the project, only the first guarantees a universal basic pension for people over 65 or with disabilities with the expansion of Pensión 65 and Contigo.

Initiative. Bazán promotes a multipillar tax reform from the Labor Commission. Photo: Marco Cotrina/La República

substantial changes

The second pillar proposes reducing to 9% the contribution of workers — currently it is 13% — and that employers give 2% and, progressively, 4%.

This also includes individuals with businesses — read, entrepreneurs — who will voluntarily contribute 5% and the State will pay the other 5% for their pensions. It is estimated to cover a universe of more than 642,000 compatriots, considering the ENAHO data for 2021.

In order not to harm microenterprises with the changes in the pension model, Bazán Narro points out that they will be given a three-year moratorium for their adaptation, since they have fewer resources than medium and large companies.

In addition, in the case of fourth-category independents, they will give 5% and the beneficiary of their service another 5%.

Within this second pillar, those who are not required to contribute in the current system are included, such as taxi drivers, street vendors, housewives and even the unemployed.

The citizens of this group will be able to pay into the new pension system and the State will repay the same amount through a “mirror contribution” so that everyone can save for their old age.

“The opinion includes the principle of universality, in the sense that every person without distinction has the right to receive a pension for old age, retirement, work disability and survival,” Bazán argued.

According to the minority opinion, although a specific cost for the state coffers cannot be established, it would approximately benefit almost 16 million Peruvians.

In the two aforementioned pillars, the State is the one who will administer the pensions under the supervision of entities such as the SBS, Sunat and Sunafil. Only in the third year do the AFPs enter the equation, since here — a complementary pillar — those with more income will benefit.

In detail, the last pillar will seize the surpluses of the second pillar — whose ceiling is up to five times the minimum vital remuneration — and the funds of those who earn more than five RMV.

What’s next now? As the opinion is based on 13 bills, for it to reach the Plenary, they must also be ruled on in the commissions to which they were sent. Some, for example, are in the Economy or Budget Commission, a group that “has not yet ruled” and, therefore, the opinion would not yet be ready to be debated in plenary session of Congress, explained a parliamentary source.

MEF will present its proposal this week

The Minister of Economy and Finance, Alex Contreras, confirmed to this newspaper that this week the proposal of the Executive Power will be sent on the reform of the pension system.

It is worth noting that the table led by the MEF was in force until May 31, and on a couple of occasions they were granted a new term to present their plan.

The numbers

• 15 years or 180 contribution units must be registered for affiliates to be entitled to a pension in this opinion.
• 5 RMV is the threshold of the second pillar. Surpluses or those who earn more would go to the third party, managed by the AFP.
• 19% of workers are in an AFP. 9% in the ONP.
• 73% of the EAP are informal workers.