With the aim of helping Peruvians face the impacts of rising prices for food and other essential products, various congressmen presented bills to authorize a seventh withdrawal from the AFP. However, these legislative initiatives have not been approved for subsequent debate in plenary session and were questioned by the Ministry of Economy and Finance.. Next, we will tell you what the head of the MEF said about it and what is needed for the disbursement of the pension fund to be approved in Parliament.
AFP Retirement 2023: what risks exist, according to the MEF?
During his participation in the forum “Peruvian pension reform and investment prospects” organized by El Dorado Investment, the Minister of Economy and Finance, Alex Contreras, assured that his portfolio will not rest until he puts a lock on the bills in Congress seeking the release of AFP funds.
“We have to put an end to the AFP withdrawals. A seventh withdrawal, as proposed by the congressmen, is absolutely unviable. It makes no sense to continue unprotecting the most vulnerable, the retirees. We are going to continue fighting and discussing so that they are “Avoid the seventh withdrawal. We were able to do it in the first semester and the goal is to not continue to violate the system and to definitively put a lock on this exit.”he said.
For the head of the MEF, authorizing a seventh withdrawal from the AFPs would have a detrimental impact on the reform of the pension system, which has proposals presented by the Executive and Legislative Branch.
“With the withdrawal of pensions there are two concerns. In the long term, it means continuing to unprotect retirees. Let us remember that every time there are fewer people who will not have a pension; and that would generate a significant outflow of capital that affects fiscal management, because the AFPs were the main buyers of Treasury bonds“, explained the head of the MEF in his last participation in the Congressional Economy Commission.
AFP Retirement 2023: how are the bills presented so far going?
To date, there are 11 bills from various congressmen that propose authorizing AFP members to request the withdrawal of their retirement funds. Most of them seek the release of up to 5 UIT, 4 UIT, 3 UIT, 50% and 70% of their Individual Capitalization Accounts (CIC), while the other three have the purpose of expanding the withdrawal amount to acquire a property or pay debts through the mortgage guarantee.
One of the latest bills presented in Congress was that of the legislator and representative of Podemos, José Luna, who intends to legalize the withdrawal of up to 4 UIT and transfer 100% to pension accounts within the financial savings system, which is the main difference in relation to the other proposals. Here we leave you a list of all these legislative initiatives that are pending debate:
- AFP withdrawal of up to 4 UIT (S/19,800) – Digna Calle (Vamos Perú)
- AFP withdrawal of up to 3 UIT (S/14,850) – Víctor Cutipa (Peru Bicentennial)
- AFP withdrawal of 50% of funds – Elías Ávalos (Vamos Perú)
- AFP withdrawal of 70% of funds – Américo Gonza (Perú Libre)
- AFP withdrawal of 50% of funds for home purchase – Patricia Juárez (Fuerza Popular)
- AFP withdrawal from 3 UIT (S/14,850) – Víctor Flores (Fuerza Popular)
- AFP Withdrawal from 5 UIT (S/24,750) – Jaime Quito
- AFP Retirement from 4 UIT (S/19,800) – Guido Bellido (Peru Bicentennial)
- AFP withdrawal of 25% to pay debts with mortgage guarantee – Melissa Córdova (Avanza País)
- AFP withdrawal of 100% for home purchase – Ilich López (Popular Action)
- AFP withdrawal from 4 UIT (S/19,800) – José Luna (Vamos Perú).
AFP Retirement 2023: what is needed for the bills to be approved?
The president of the Commission on Economy, Banking, Finance and Financial Intelligence of Congress, César Revilla, stated in statements to La República that all legislative initiatives of parliamentarians linked to the release of the pension fund will be addressed in a technical and You have to evaluate how many it will benefit.
“We have to evaluate who is going to benefit and how many people in a state of vulnerability the rule is going to help. The debate will include the opinion of the members and we will determine with them the real numbers of beneficiaries and how many have 4 UIT in your accounts to withdraw”he claimed.
For his part, José Luna pointed out in the Parliament’s Economy Commission that, if this legislative initiative is not approved, “the political class would turn its back on the needs and demands of the population.”
Like any parliamentary procedure, AFP withdrawal proposals must be debated in ordinary committees and ruled on for subsequent discussion in the Plenary Session of Congress. So far, these projects have been referred to the Economy and Labor commissions of Parliament, chaired by legislators César Revilla and Pasión Dávila, respectively.
Source: Larepublica
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