On the march to reform the pension system in Peru, they have already been ruled in the Congress the proposals of the Commission of Economy and the one of Job. The Executive, for its part, presented its own project last Tuesday after several months of delay.
In the document published by the Ministry of Economy and Finance (MEF), the sector that presides over the Multisectoral Commission of the Government, specific points are touched on such as automatic affiliation from the age of 18, minimum pension and, among others, commissions paid by affiliates in the Private Pension System (SPP).
They would reduce the payment of AFP commissions: who would benefit?
What is proposed is to introduce periodic auctions in the commission on remuneration or flow (percentage that is discounted to the workers of your monthly salary).
The group of contributors that belongs to this commission scheme would benefit from the possible incorporation of tenders that cause the AFPs to offer lower commissions in order to manage the contributions. At present, the auction only reaches affiliates who pay a commission on the balance.
Payment of commissions of SPP affiliates varies depending on each AFP. Photo: composition LR/Andina
For example, AFP Integra is the current winner of the tender, for which the percentage of the commission it charges is 0.78%, an amount lower than that of its competitors (Prima, Profuturo, Habitat).
In summary, with the new proposal, the Government seeks to apply the same formula for remuneration commissions.
Executive bill on pension reform in Peru. Photo: Capture/MEF
AFP: What is the commission on flow?
It is also called commission on remuneration because it represents a percentage of the worker’s gross monthly remuneration. If the contributor joined an AFP before February 1, 2013means that it belongs to this commission scheme.
AFP: What is the commission on the balance?
Although the flow rate remains unchanged, the commission on balance has a major update that is current as of February 2023. What is it about?
In accordance with the Superintendence of Banking, Insurance and AFP (SBS), this will charge you only the percentage on the annual accumulated fund (balance) of affiliate and no longer the gross monthly salary because this option was removed. With this modification, around 6.8 million affiliates who paid a mixed commission benefit.
- It is up to you to pay it if you joined as of February 1, 2013.
- It is up to you to pay it if you belonged to the flow commission, but you did not ratify your permanence.
| AFP | Commission on flow (% of gross remuneration) |
Annual commission on balance (mixed) |
| Habitat | 1.47% | 1.25% |
| Integra | 1.55% | 0.78% |
| Cousin | 1.60% | 1.25% |
| future | 1.69% | 1.20% |
Source: Larepublica
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