Pension increase does not materialize despite being announced as a priority of the Government

On January 10 of this year, the head of the Presidency of the Council of Ministers (PCM), Alberto Otárola, during his inauguration speech before the Congress of the Republic, announced that one of the priorities of his cabinet would be the improvement in pensions; however, more than six months have passed and that promise has not yet materialized.

And it is that, despite the fact that it was specified that the Ministry of Labor and Promotion of Employment (MTPE) would be in charge of ensuring this issue, the minimum pension in the National Pension System (SNP) −administered by the Office of Standardization Pension (ONP) − remains at S/500, an amount that has not been updated since 2019.

“He Ministry of Labor will emphasize the point of improvement of pensions that have been relegated for a long time with amounts that do not allow a decent life for retirees”, said at the time the premier Otárola.

For the president of the National Central of Retirees and Pensioners of Peru (Cenajupe), Óscar Alarcón, the premier’s announcement has only remained in words, since they have not even been called to address their just claims, despite the fact that they have also requested a meeting to make the improvement in pensions effective.

“It would be a miracle if the Executive called us, but we feel totally discriminated against and ignored. There is no political will to attend to the increase in pensions, it is a very critical situation and we are going to participate in the protests on July 19 together with the CGTP for decent pensions and for a reform based on social security principles,” the leader told The Republic.

In this sense, Alarcón urged the Government to fulfill its promise and hopes that the President of the Republic, Dina Boluarte, will announce in her message to the nation the increase in pensions for more than 650,000 retirees from the ONP.

An insufficient pension

The S/500 that ONP retirees receive monthly is barely above the cost of the basic consumption basket per person, which stood at S/415 by 2022, according to the National Institute of Statistics and Informatics (INEI). .

According to the leader of the Cenajupe, the increase in the prices of the basic basket products has caused the current minimum pension to be insufficient for many retirees and even a large part of said amount is destined to cover the payment of services such as water , light and internet.

Likewise, he said that in order for retirees to survive, they receive financial support from the other members of their family, since the pension turns out to be insufficient, even more so when it comes to buying medical prescriptions to treat their illnesses.

Alarcón also recalled that there is a mandate from the Constitutional Court (TC) −File 00009-2015− which provides that the Executive Power and the Congress of the Republic must promote “the progressive increase of the minimum pension of the different pension schemes (… ) within 3 years. Therefore, he called on the Government to respect the ruling of the collegiate.

Review every three years

A couple of months ago, the Multisectoral Commission for the reform of the pension system, made up of the PCM, the Ministry of Economy and Finance (MEF), MTPE, the Central Reserve Bank of Peru and the Superintendency of Banking, Insurance and AFP (SBS ), published its regulatory proposal in which they also incorporate a complementary provision for the adjustment of the minimum pension.

According to the proposal, “the amount of pensions in the SNP would be evaluated every three years, including the minimum pension, taking into account the financial capacity of the State and the possibilities of the national economy.”

reactions

Alberto Otárola, President of the Council of Ministers

“The Ministry of Labor will emphasize the point of improving pensions that have been relegated for a long time with amounts that do not allow retirees a dignified life.”

Óscar Alarcón, president of the Cenajupe

“Outside of the ads, there is no political will. In practice there is nothing despite the fact that the Minister of Labor was entrusted with it. Due to the rise in prices, the S/500 pension is not enough”.

figures

• 2019 was the last year that the Government raised the pensions of the ONP.
• 20 years of contributions must be made by ONP affiliates to access a minimum pension.