Only those who earn S/2,500 achieve pensions of at least S/500 in the AFP

Since the private pension system began operations in Peru in 1993, made up of the AFPs, a minimum pension was not established, since it was established that said amount would depend on the savings made by the member and the profitability they accumulate.

That is why in this scheme Retirees are reported to receive pensions below S/500minimum offered in the public system —made up of the ONP—.

Why does this happen? Being a system that depends on the accumulated pension funds, the pension will depend greatly on the monthly income that the member receives, that is, the more he earns, the remuneration he receives at the time of retirement. retirement It will be greater, if not, quite the opposite. A few weeks ago, the head of the SBS, Socorro Heysen, exemplified that with a fund of S/350,000 you could have a retirement of S/2,000.

Thus, in the words of the head of the Ministry of Economy and Finance (MEF), Alex Contreras, currently an affiliate of the AFP You must earn S/2,500 monthly to achieve a pension of S/500. For this reason, he pointed out that it is important to preserve the ONP’s solidarity model in the new pension reform, since it has guaranteed a minimum pension—and for life—with the condition of having made 240 contributions.

“To have a minimum pension of S/500, you should have an income of around S/2,500, which is well above the average salary, so this solidarity system allows pensions to be financed,” said Contreras in the Economy Commission congressional.

In this sense, the official highlighted that the ONP scheme is precisely designed for those citizens who earn low income, therefore, he exemplified that, if a person receives a monthly salary of S/1,500, it is in their best interest to be affiliated with the public system.

In this way, the Executive Branch proposes that the affiliates of the AFP, especially those with lower incomes, can transfer to the ONP at any time. To do this, they must transfer 100% of their pension funds, as well as the profitability generated.

“Whoever has the incentive to move from the private to the public system is the one who probably does not have the right to a pension or a very low one. This will allow protection to be given to those citizens who at this moment could leave with pensions of S/20, S/30 or even S/50,” he concluded.

Government will co-finance the minimum pension in the AFPs

The Executive’s pension reform proposal proposes establishing a minimum and proportional pension in the AFPs.

To this end, it is proposed that members with 240 contributions and a pension fund that does not allow financing a pension of at least S/600 will receive a public supplement so that they can access said retirement amount.

“At the moment, In the private system you could retire with pensions of S/20, S/30 and S/50. In this proposal, what is going to happen is that there is the possibility that the worker, upon termination, transfers his resources to the national fund, which would receive a complement from the public treasury to guarantee the minimum or proportional pension,” explained the owner. of the MEF.

The word

Alex Contreras, Minister of Economy

“The system has not guaranteed pensions, it has excluded many citizens, it has not differentiated the formal from the informal and it is a concentrated system where there are only four institutions at this time.”