In the midst of the ongoing debates on the pension reform proposals, Congressman Américo Gonza (Peru Libre) presented, last September 4, the bill no. 5795which seeks to eliminate the private system created by Decree Law 25897 and made up of four Private Pension Fund Administrators: AFP Integra, Prima Profuturo, Prima AFP and AFP Habitat.
Among the main reasons is the discontent of workers due to inequity in distribution, given the high commissions and profits earned by private institutions, together with the low profitability for affiliates. According to the Superintendence of Banking, Insurance and AFP (SBS), during the first four months of 2023the AFPs registered losses in the profitability of the funds for a total of S/4,346 million.
“At the end of December 2021, the Private Pension System had an amount of S/ 133,310 million, but in April it fell to S/ 128,964 million. A decline of 3.26%. Given this, thousands of users have reported losses in their pension funds, in some cases of up to more than S/ 7,000”, the document can be read.
To this is added that many employers are not complying with the payment of contributions. Currently, there are some 750,000 judicial processes and a debt in the individual capitalization accounts of affiliates that exceeds S/22,000 million.
In how long should the total funds be delivered to the affiliates?
In accordance with the provisions of the PL, the SBS would have a period of 90 days after the promulgation of the norm to establish the operating procedure for the return of funds, which must be carried out within the following six months.
“The term for the full return of the pension capitalization funds to affiliates It would be carried out within 06 months after the operational procedure has been established by the Superintendency of Banking, Insurance and AFP”can be read in the final provisions of the document.
Source: Larepublica
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