They present a new AFP retirement project for up to 4 UITs: how many are pending debate?

Hundreds of citizens and groups mobilized this Thursday, November 9, to demand the approval of a seventh withdrawal from the Pension Fund Administrators (AFP), the promulgation of the law that will allow the return of contributions to Fonavi and compliance with the Bono Recognition. Along these lines, last Tuesday the 7th, a new legislative project by Congressman José Pazo entered the documentary process that allows affiliates to disburse up to 4 UIT of their pension funds, equivalent to S/19,800.

The Commission on Economy, Banking, Finance and Financial Intelligence, chaired by Congressman César Revilla; is in charge of scheduling the support of these proposals, debating them and preparing an opinion for their subsequent submission to the Plenary. Next, we will tell you what this bill is about and how many are pending to be addressed. Pay attention!

New AFP retirement project of S/19,800: what is it about?

According to the explanatory memorandum of Bill No. 6340 by legislator José Pazo of Somos Perú, the objective of this regulatory proposal is to authorize AFP members to withdraw in an extraordinary and optional manner up to 4 Tax Tax Units ( UIT) of their funds accumulated in their Individual Capitalization Accounts (CIC). With this, they will be able to use their pension savings to mitigate and alleviate the effects of the economic recession and the announced arrival of the El Niño phenomenon.

“Another direct benefit to the thousands of AFP contributors is allowing them to partially use their own pension savings in the cancellation of debts of the financial system, whose annual effective active interest rates exceed 16%. There are also workers with terminal illnesses or with children with various pathologies that require expensive treatments, so in their case it is urgent to withdraw their savings in the CCI of the AFP,” reads the legislative proposal of the Somos Perú parliamentarian.

What would the AFP withdrawal of 4 UITs be like?

The legislative proposal by Congressman José Pazo, which empowers members of the Private Pension System (SPP) to withdraw up to S/19,800 from their AFP funds, establishes the following procedure to make the disbursement:

• AFP members will have to submit their request remotely, virtually or in person within 90 calendar days after the law regulations come into effect.
• The payment will be up to 2 UIT, equivalent to S/9,900, 30 calendar days after the application is submitted to the AFP to which the affiliate belongs. In that sense, the second disbursement was made 30 days after the first.
• If the member decides to stop withdrawing funds from their Individual Capitalization Account, they may request it from the AFP up to 10 days before disbursement.
• The withdrawal of funds will maintain its intangible status and may not be subject to discount, legal or contractual compensation.
• In the final complementary provision of the legislative proposal, it is established that the Superintendency of Banking, Insurance and Private Pension Fund Administrators will determine the operating procedure for compliance with this law, within a period that should not exceed 15 calendar days from publication. .

AFP Withdrawal: how many projects are pending debate?

This week, 2 new bills were presented to authorize AFP members to request a seventh withdrawal of their funds. The first of them is from congressman José Pazo, who proposes releasing up to 4 UITs from the CIC, and the other is from parliamentarian Digna Calle of Podemos Peru, whose initiative seeks for citizens to release 100% of their pension savings in the event of death.

Currently, there are 20 bills that were presented by congressmen from various groups, of which 9 propose releasing up to 4 UIT, three intend to expand the disbursement amount to acquire a property or pay debts through the mortgage guarantee, and the majority establishes that AFP members use their savings to face the impacts of rising prices of the basic family basket.

So far, only four legislators have presented the scope of their bills (Segundo Montalvo, Víctor Cutipa, Guido Bellido and José Luna) and 16 more are pending to be addressed in the Economy Commission:

1. AFP withdrawal from 2 UIT (S/19,800) – Segundo Montalvo Cubas (Free Peru)
2. AFP withdrawal of up to 4 UIT (S/19,800) – Digna Calle (Vamos Perú)
3. AFP withdrawal of up to 3 UIT (S/14,850) – Víctor Cutipa (Peru Bicentennial)
4. AFP withdrawal of 50% of funds – Elías Ávalos (Vamos Perú)
5. AFP withdrawal of 70% of funds – Américo Gonza (Perú Libre)
6. AFP withdrawal of 50% of funds for home purchase – Patricia Juárez (Fuerza Popular)
7. AFP withdrawal from 3 UIT (S/14,850) – Víctor Flores (Fuerza Popular)
8. AFP Withdrawal from 5 UIT (S/24,750) – Jaime Quito
9. AFP Retirement from 4 UIT (S/19,800) – Guido Bellido (Peru Bicentennial)
10. AFP withdrawal of 25% to pay debts with mortgage guarantee – Melissa Córdova (Avanza País)
11. AFP withdrawal of 100% for home purchase – Ilich López (Popular Action)
12. AFP Retirement from 4 UIT (S/19,800) – José Luna (Vamos Perú)
13. AFP withdrawal from 4 UIT (S/19,800) – Jorge Luis Flores Ancachi (Popular Action)
14. AFP withdrawal from 4 UIT (S/19,800) – Kelly Portalatino (Perú Libre)
15. AFP withdrawal from 4 UIT (S/19,800) – Luis Aragón (Popular Action)
16. AFP Withdrawal from 4 UIT (S/19,800) – Mariza Taipe (Perú Libre)
17. AFP withdrawal from 4 UIT (S/19,800) – Flavio Cruz (Perú Libre)
18. AFP withdrawal of up to 3 UIT (S/14,850) – Edgard Reymundo (Democratic Change-Together for Peru)
19. AFP Retirement from 4 UIT (S/19,800) – José Pazo (Somos Perú)
20. AFP withdrawal of 100% of funds in cases of death of the member – Digna Calle (Vamos)