More than two years have passed since the approval of the Law no. 31173, a norm that guarantees compliance with the Law for the return of money from the National Housing Fund (Fonavi) to the workers who contributed to the extinct fund. However, to date, no payment has yet been made to the nearly 2 million fonavistaswhich are mostly older adults. What are the delays due to and why hasn’t the refund of contributions started until now? We tell you in this chronology.
In recent years, around this issue there have been twists and turns; hopeful advances and distressing setbacks to the detriment of the fonavistas. In April 2021, In the midst of the pandemic, Law 31173 was approved, which established the effective and immediate refund of contributions what the workers did prioritizing the vulnerable population as a consequence of COVID-19. However, the Executive observed some points, which prevented the execution of the norm.
A year later, in April 2022, the Congress corrected the observations and approved law 31454 to guarantee payments. Nevertheless, there were more obstacles. At that time, the installation of the Ad Hoc Commission in charge of executing the return of contributions, and made up of representatives of the Ministry of Economy and Finance (MEF), the Pension Standardization Office (ONP) and the National Federation of Fonavistas and Pensioners of Peru (FENAF-Peru).
Executive Power must promulgate the recent approval of the autograph that seeks to advance payment of fonavistas. Photo: composition LR/Andina
The MEF alleged that the representatives of the fonavistas since there was an error in the name of the association. In response to this observation, the corrections were made before the National Superintendency of Public Registries (Sunarp), and in parallel, from Congress, they published Law No. 31604 to modify this point and thus continue giving the green light to the process of Payments.
Ruling of the TC: return only of contributions, but not of employers
However, once the Ad Hoc Commission was installed, the Executive filed a lawsuit before the Constitutional Court (TC), so that the rule was stagnant for a few more months. In March 2023, the referee resolved the request and provided that only contributions made by workers be returned, but not by employersa hard blow that reduced the State debt from S/42,000 million to only S/6,000 million (more than 90%).
When it was thought that with this verdict the MEF was going to start with the return of contributions, this ministry observed another regulatory point that once again prevented the start of payments. What did he argue? That the law did not allow the issuance of certificates of recognition of contributions and rights (Cerad) partial, but for the total amount.
Fonavi: Congress approved partial return and it remains in the hands of the Executive
To correct this point and meet the postponed order of the fonavistasthe last June 21 of this year, the Plenary of Congress approved the autograph of the project of law no. 4702 which authorizes the return of partial payments, which does not prevent later crediting of larger amounts due to the permanent regulatory trap.
The autograph, in the hands of the Executive Branch, proposes some corrections to the current regulations. The way is again paved. In case the Executive observes this law, the time to return the money would be extended once again.
According to the latest judgment of the TC, the State debt is only subject to contributions from workers, but not from employers. Photo: Composition LR/Andina
In the possession of the Ad Hoc Commission there are more than S/2,000 million, those that will be used for the first forward return of contributions to retirees. In addition, the S/50 million that the State agreed to transfer from the public budget for this year.
“I value the fact that there is an advance, a refund, even if it is partial, it is already a satisfaction in the face of a situation that was expected by all pensioners,” said Luis Luzuriaga, president of the National Federation of Fonavistas and Pensioners Association of Peru (Fenaf-Peru) in a previous communication with La República.
Partial return to fonavistas: who would be the first beneficiaries?
According to this last norm, pending promulgation, the ad hoc commission must give priority attention to people over 65 years of age, to those registered in the National Council for the Integration of Persons with Disabilities (conadis) and those who have some serious or terminal illness, be the holders or successors.
Another change is that recognizes the right of return to the heirs of deceased workers. If the amount to be reimbursed exceeds S/19,800 (4 UIT), the legal regulations on succession issues will be taken into account, so it will be required to have the right registered in the public records.
What is missing for the partial return of Fonavi 2023?
- The signature of the Executive Power: if the Executive observes this law, Congress can approve it by insistence
- Promulgation in the official newspaper El Peruano
- 120 day limit for calculation of the certificate of recognition of contribution periods (Cerad)
- Issue the Cerad for partial payment and know how much would remain on account.
According to the latest sentence of the TC, the State debt is only subject to the contributions of the workers, the amount of which amounts to S / 6,800 million (According to calculations in 2021). However, if updated, the amount would rise to S/7,000 million.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
