AFP: reduce disability insurance rate, survival and funeral expenses

Those affiliated with Private Pension System (SPP) They will pay 1.70% for the pension insurance rate starting in 2024. This was announced today by the AFP Association at the closing of the seventh tender for disability, survival and funeral insurance under a collective policy (Sisco VII).

“The current rate of 1.84% drops to 1.70%. With this lower rate we reaffirm our commitment to working for the benefit of members,” said Giovanna Prialé, president of the AFP Association.

In the tender, the six participating insurance companies presented their offers to obtain at least one of the seven fractions that represent SPP affiliates. In total, four insurers covered the seven fractions tendered.

La Positiva managed to cover two fractions with a rate of 1.70%, Ohio National was awarded two fractions with 1.69%, Pacífico two fractions with 1.70% and Vivir Seguros one fraction with 1.73%.

Finally, as a result of Sisco VII, a premium of 1.70% was established, which will be applied from January 1 to December 31, 2024. The pension insurance rate is collected by the AFPs monthly and transferred directly to the insurers.

In the SPP, disability, survival and funeral expenses insurance protects the member and their beneficiaries against the risk of disability (reduced ability to work due to illness or accident) or death.

By having active insurance coverage, you are guaranteed to have the necessary funds to pay the disability and survivor pensions to which you are entitled, as well as the payment of funeral expenses.

As of June 2023, it is recorded that more than 15,000 people have the support of a disability pension and more than 112,000 beneficiaries of affiliates have a survivor’s pension in the SPP. Furthermore, on average the disability pension amounts to S/1,740 and the survivor pension amounts to S/706.