Last Wednesday, October 4, the Congressional Economy Commission began the debate on the bills that seek the release of funds from the individual accounts of the AFPs. One of his first guests was the head of the Ministry of Economy and Finance (MEF), Alex Contreras, who reiterated the negative impacts of this measure on retirees’ pensions, but was in favor of a focused withdrawal. Below, we tell you all the details of this session, how many bills are pending to be addressed and what is left for them to be approved.
Congress began the debate on AFP withdrawal: what did the MEF say?
During his presentation at the Congressional Economy Commission, the head of the MEF, Alex Contreras, reiterated his position against authorizing a seventh withdrawal from the AFPs, since it could become a fiscal risk and harm the pensions of 1.3 million of members over 50 years of age.
“In the future, (these people) will depend on their luck, on their ability to recover those funds, and that for the State means a fiscal risk, because it is likely to lead to the expansion of social programs,” he explained.
Despite this alert and given the possibility that Congress approves some of these legislative initiatives at its insistence, Contreras left open the possibility of supporting a new targeted withdrawal of pension funds that benefits the most vulnerable sectors.
“I consider that a measure like this is populist, it is not limited. If we really thought about those who have the least, those who are currently unemployed, then we should limit it to this group. This is the first time that the MEF opens this possibility because we have always been against it, but considering the situation and the political concern, then let’s focus on this measure; we are always willing to supportr”, he maintained.
AFP Retirement 2023: how many bills are pending debate?
To date, 15 legislative initiatives have been presented to authorize AFP members to request a seventh withdrawal of the money they have accumulated in their pension funds. The largest number of these proposals are related to the release of 5 UIT, 4 UIT, 3 UIT, 2 UIT, 50% and 70% of the Individual Capitalization Accounts (CIC) of the Private Pension System, with the objective of that citizens have their pension savings to cover the expenses caused by the rise in prices of the basic family basket.
The remaining proposals aim to expand the withdrawal amount to acquire a property or pay debts through the mortgage guarantee. However, none of them have been ruled on in the two terms of office of the Congressional Economic Commission. Just last October 4, parliamentarian Víctor Cutipa presented the scope of his bill 04190/2022-CR that extraordinary authorizes AFP members to release up to 3 UIT of their total funds.
The last of these legislative initiatives was presented by Congressman Luis Aragón, from Acción Popular, which provides for the withdrawal of up to 4 UIT of the money accumulated in the accounts of retirees. Below, he knows all the projects that are pending debate in Parliament:
- AFP withdrawal from 2 UIT (19,800) – Segundo Montalvo Cubas (Free Peru)
- 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 Retirement from 4 UIT (S/19,800) – José Luna (Vamos Perú)
- AFP withdrawal from 4 UIT (S/19,800) – Jorge Luis Flores Ancachi (Popular Action)
- AFP withdrawal from 4 UIT (S/19,800) – Kelly Portalatino (Perú Libre)
- AFP withdrawal from 4 UIT (S/19,800) – Luis Aragón (Popular Action).
AFP Retirement 2023: what is missing for it to be approved?
The Economy Commission chaired by Fuerza Popular parliamentarian, César Revilla, convened its ordinary session last Wednesday, October 4, to hear the support of two bills related to the withdrawal of funds from the AFPs. In that sense, only parliamentarian Víctor Cutipa was able to explain the main scope of his legislative initiative that proposes authorizing affiliates to release up to 3 UIT from their retirement accounts.
The other proposal by legislator Segundo Montalvo, which authorizes the extraordinary withdrawal of 2 UIT from AFP funds, could not be supported due to lack of time, since other topics were also included on the agenda, such as the MEF’s presentation on the implications of this type of measures to the Private Pension System, the presentation by the president of Perupetro, Isabel Tafur, regarding the continuity of the oil blocks in the northwest and the evaluation of this state company, among others.
In this sense, the Economy Commission has yet to continue scheduling the presentation of these proposals to begin the debate on the 15 bills related to the withdrawal of pension funds until a ruling is drafted that enters the Plenary Session for subsequent consideration. discussion and voting. Let us remember that previously, the Executive Branch observed these norms, but the Constitutional Court declared them viable.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
