Pension reform: Aspec requires affiliate participation in AFP investment committees

The Peruvian Association of Consumers and Users (Aspec) He once again expressed his concern regarding the Opinion approved by the Congressional Economy Commission that drastically reforms the Pension System in force in Peru.

The device promoted by congresswoman Rosangella Barbarán establishes measures that, for Aspec, will harm both the affiliates of the Private Pension System in charge of the AFPs, as well as the pensioners of the National Pension System (DL No. 19990 and other regimes pensioners) in charge of the ONP.

To mitigate these negative effects, the consumer defense association proposed that the investment committees of the AFPs have the participation of a representative of the affiliates, who must be chosen by public tender from a list of affiliated professionals who have minimum experience requirements in granting credits or investments.

“The public tender would be in charge of a prestigious university. The chosen representative must inform the affiliates of the corresponding AFP on a monthly basis, about the approved investments and those that they observe at risk, under responsibility,” considered Aspec.

In this way, the risk of the AFPs investing in operations that cause losses or in companies linked to their economic group to unduly benefit them at the expense of affiliates will be eliminated.

Aspec: legal reserve for the pension reform

On the other hand, Aspec proposed that the legal reserve account should be effectively applied to bad investments (loss of profitability) and stop being a “merely decorative” account.

Said account was created to financially compensate affiliates in case of losses but, inexplicably, it is not used and their funds are the ones that suffer.

For this reason, it should be provided that the SBS, within a period of no more than 30 days after the enactment of the law, orders the application of the money from said account in order to replace the losses suffered by the affiliates, which should be done within a period of no more than of 30 calendar days.

“It must be expressly noted that the 95.5% withdrawal option remains in force for those who wish it for both the Early Retirement Regime due to Unemployment (REJA) and for retirement, in all its modalities”

In the same way, the possibility of free disaffiliation from the AFPs must be expressly stated, as it is in the National Pension System, without age limit.

Finally, Aspec announced that it will continue to propose more measures in order to guarantee that the debate is public and technical, because “the law that is finally approved will inevitably affect the lives of millions of people and their families.”