The head of the Ministry of Economy and Finance (MEF), Alex Contreras, announced that in the final proposal for the pension reform that the Executive Branch will present to the Congress of the Republic, a minimum pension of S/600 for members of the National Pension System (SNP) – administered by the ONP – and the Private Pension System (SPP) – made up of the AFPs.
“The minimum pension It is S/600, that has increased. S/600 is a minimum pension for both the public system and the private system, that is also in the proposal that we are proposing to reform the pension system,” Contreras Miranda said at a press conference.
The Minister of Economy indicated that, although the S/600 proposed as minimum pension It could be insufficient for many Peruvians, the ideal is for more citizens to access the pension system, since currently a group of older adults continue to work because they do not have a pension.
“Without a doubt it is never enough, but S/600 is much more than what many citizens have at this moment. At this moment there are people of 65, 70 and 75 years old who continue working and generating income simply because their pension is zero The ideal as a State and country is that the minimum pension grows over time and that will depend a lot on the ability to generate income and savings,” the official said.
Proposal will be discussed next week
The head of the MEF also announced that the proposal to reform the Executive’s pension system is already in the final stretch and it is expected that next Monday, October 9, the bill can be discussed and approved in the Council of Ministers, to later be sent to Parliament.
“This proposal has already gone through a long comment process and we hope that this Monday it can be approved by the Council of Ministers. (…) What we want with this proposal first is to generate more competition, reduce commissions, establish three basic pillars. That they provide protection to those with lower incomes, that they generate incentives for savings, strengthen competition, consider contributions, so that both the public and private systems can offer a minimum pension to the members,” the official explained.
Source: Larepublica
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