Within the pension system reform bill sent by the Executive power to Congress, the withdrawal of 95.5% of the funds, currently applied for early retirement for people between 50 and 55 years old, is put to an end.
Nevertheless, The proposal prepared by the Ministry of Economy and Finance (MEF) eliminates the possibility of withdrawing this money for new members of the restructured pension system and for current AFP contributors under 40 years of age. Those greater than this threshold will be evaluated by the SBS to have the 95.5% in question.
“What is proposed is to limit withdrawals to 95.5% for new members and for those already in the system, if they are under 40 years old, so that they can build a pension for the future. The SBS will evaluate according to the conditions that exist today. The rules are not being changed”, Andrés Zacarías, general director of financial markets and private pensions of the MEF, mentioned in a conference.
Refund of contributions after withdrawal from AFP?
The Executive’s initiative indicates that the AFP members who used their resources—that is, who withdrew their contributions in the six layers authorized in the pandemic—would generate a situation of inequality if they do not revert this money to the system and would break the premise of “ equal effort, equal benefit.”
Thus, those who had their AFP and who do not benefit from the semi-contributory pillar of the new pension system – in which the State supplements what is required for a minimum pension – will still be able to access a pension with the rules of the system. private.
“The objective is to provide protection to the member, but also the sustainability of the system. It is intended that the State’s assumption of this minimum pension guarantee can be financed both by the affiliate’s resources and by contributions from the public treasury. If we consider that the member in his active stage withdrew part of his resources before retirement, it is necessary that the funds be restored in some way, gradually and progressively,” Zacarías commented.
Source: Larepublica
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