More than 5 million AFP members have less than S/4,950, according to the SBS

As of June 2023, of the 9.1 million members of the private pension system, 5.1 million have less than S/4,950 (1 UIT) in their individual capitalization accounts (CCI) when before the pandemic they reached 3.1 million. Likewise, 2.3 million have empty accounts, according to the Superintendency of Banking, Insurance and AFP (SBS).

“82% of (AFP) members have less than one UIT. What does this tell us? “That they will have little possibility of benefiting from any withdrawal that you approve,” emphasized María del Socorro Heysen, superintendent of Banking, Insurance and AFP, during her presentation at the Congressional Economic Commission.

Since the first week of October, this working group has been inviting technical actors to express their opinion regarding the more than 12 proposals to authorize a seventh withdrawal from pension funds.

The risks

The official compared the behavior of the workers in a focused withdrawal and in two unrestricted withdrawals, pointing out that in the first case the 63% who were unemployed used their funds; while in the second case, 55% of active workers did so. “The withdrawals have not benefited people who were in vulnerable situations, but rather those who were contributing,” she said.

For this reason, he added that a new withdrawal of up to S/19,800 (4 UIT) would result in a total disbursement of S/29,500 million, which would leave 89% of members without a pension. (see infographic).

Added to this, the replacement rate – a percentage equivalent to the last salary that the worker received before retiring – which today is 40%, will drop to 20% (due to the already approved retirements). For example, if a member earned S / 1,000 in his last 24 contributions, he will receive S / 200 in pension; and if he won S/2,000, he will receive S/400.

Furthermore, Heysen pointed out that it also affects us internationally, since “it distances us from the OECD accession process,” as stated by the president of the AFP Association, Giovanna Prialé, in an interview with La República exactly one month ago.

The counterpart

“With less than one UIT, what pension can they (affiliates) expect? 15, 10 soles? Does that really make sense?” asked Congressman Carlos Anderson (ungrouped).

He added that part of the responsibility for the failure of the AFP lies with the S.B.S.since he participated in its design, determining how investment portfolios should be structured, which has meant that these companies have few options to invest money and obtain better returns.
For his part, José Luna ( Podemos Peru ) said that the real reason why the AFPs oppose a withdrawal of funds is because this money is cheap financing for banks that are part of their own economic group.

The president of the Association of Former AFP Members, Italo Lezcano, told this medium that it is not true that if a new withdrawal is approved, all members will accept it. “It is not convenient for people who have minimal funds for the AFP to have them. So that? So that they wait until they are 65 years old and can withdraw a pension of S/10, S/5, S/3. That is of no use to them, it is better that they have the opportunity to withdraw their fund today,” he said.

Earrings

Yesterday, two more bills were supported to authorize a seventh AFP withdrawal, so in total three out of fifteen have been presented.

After this phase, the commission must work on an opinion that groups together the initiatives that have similarities to prepare a final text that can be debated and voted on in plenary.

They request a session to discuss withdrawals only

Congressman Américo Gonza (Perú Libre) sent a letter to the president of the Economy Commission, César Revilla (Fuerza Popular), to request you to hold a special session to deal only with issues related to the withdrawal of contributions in the AFPs.

He explained that thousands of Peruvians require this refund to face the lack of work, the rise in prices of essential products, as well as the negative impact that the El Niño phenomenon.