MEF proposal for pension reform would guarantee a minimum of S/ 500

The ministry of Economy and Finance (MEF) presented last Tuesday, June 20, a pension reform proposal prepared by the Multisectoral Commission made up of the Central Reserve Bank (BCRP), the Superintendency of Banking and Insurance (SBS), the Ministry of Labor (MTPE) and the presidency of the Council ministerial.

This report includes four pillars: non-contributory, semi-contributory, contributory and voluntary. Among the key points, within the contributory, it is proposed that young people join a pension system, both private and public, when they reach the age of majority. In addition, according to the head of the MEF portfolio, Alex Contrera, the proposal guarantees that a minimum pension of S/500 is delivered.

“One of the great criticisms of the private system is the low pensions, between approximately S/ 50 and S/ 100. What we are looking for is that, at least, a minimum of S/ 500 is guaranteed, which will be reviewed over time,” he reported this Saturday, June 24, on Radio Nacional. “Many of the conditions of both the public and private sectors are equated, the payment of staggered pensions will also be allowed, that is, based on contributions,” he added.

Along these lines, Contreras reiterated that this proposal is not that of the Executive, which must go through other validations, but rather it is a report prepared by the Commission that he chairs in order to contribute to the debate for the sake of transparency.

“It is not the Executive’s proposal, but we do share some important elements. The executive’s proposal has a route, it goes through the Council of Vice Ministers, it reaches the Council of Ministers, there is an additional path, but we are going to take some important guidelines as a basis”, added the official.