Companies will be able to split debts with the AFPs up to 60 installments

Private sector companies that did not comply with depositing the contributions of their workers to the AFPs will be able to take advantage of the reprogramming regime for the payment of pension contributions of the Private Pension System (Repro AFP Privado) until December 31, 2023. The regulation of Law No. 31690 that was approved by Supreme Decree 145-2023-EF of the Ministry of Economy and Finance (MEF) establishes that the debt can be divided into up to 60 installments.

The generated debt will be updated by applying the average profitability of fund 2 of the Private Pension System (SPP) in replacement of the interest and fines applied regularly. In the same way, the debts received generate the suspension of judicial processes.

As of February 2023, there are 151,017 employers who have not deposited their workers’ contributions to their pension fund, of which 92,510 are employers with active RUC status. The existing pension debt amounts to S/18,433 million, affecting 1,202,028 affiliatesaccording to the Association of Private Pension Fund Administrators (AAFP),

Employers may welcome Repro AFP-Private any pension debt regardless of the status of its collection or that have been the subject of some system of fractioning or regularization of contributions. The only debts that cannot enter the program are those that are part of a bankruptcy proceeding.

In coordination with the Superintendency of Banking and Insurance (SBS) and employers, the AFPs must make available to employers the information on the debt for social security contributions that may be a matter of acceptance.

In case of non-payment, the default interest rate will be applied to the overdue installment. If three consecutive installments are not paid, the benefits of the program will be lost and the AFPs will resume the judicial collection process.