Government approved its proposal to reform the pension system

As planned, the Minister council approved this Monday, October 9, the bill that creates the new Peruvian pension system, which will be sent to the Congress of the republic for your discussion. The initiative seeks to establish a minimum pension of S/600 for members of the ONP and AFP.

“We have agreed to urgently send a bill that creates the new Peruvian pension system. This has been a debate that has been taking place for several weeks, months, in the Executive power, in the Council of Vice Ministers; We have installed an ad hoc Commission for the agreement that we have finally adopted, and we believe that it will be a decision that will resolve once and for all the serious problem that thousands of Peruvians are going through, especially those who are reaching retirement age. “said the head of the Presidency of the Council of Ministers, Alberto Otarola at a press conference.

The head of the Ministry of Economy and Finance (MEF), Alex Contreras, indicated that the proposal seeks to create a multi-pillar system. In addition, it is proposed to include more competitors as fund administrators. forecastwith the aim that the commissions charged to affiliates can be reduced.

“We seek to create a multi-pillar system that, for the first time in history, establishes a minimum pension for the private pension system, which has been established at S/600. This bill also incorporates new competitors as potential pension administrators: banks, municipal savings banks, rural savings banks, we are also incorporating insurance companies and investment banks, with the aim of reducing commissions,” the official explained.

The head of the MEF highlighted that the proposal is fiscally sustainable and aims to benefit 899,000 citizens in its first year of implementation. Likewise, he mentioned that the proposed pension system not only focuses on the formal market but also the informal one.