They present a new AFP retirement project for disbursement of up to S/24,750: how would it be accessed?

The debate on a seventh withdrawal of the AFP in Congress was interrupted last week by the plenary session that approved the Public Sector Budget Law for Fiscal Year 2024. In that sense, the working group chaired by the parliamentarian César Revilla had to suspend his last ordinary session, but that did not prevent more legislative initiatives from entering the documentary process.

This time, Congressman Segundo Quiroz, from the Magisterial Bloc, presented a new bill on November 28 that seeks to authorize the disbursement of up to 5 UIT of pension funds, an amount greater than the other proposals of the legislators. If you want to know the main scope of this initiative and the latest news on the AFP retirement debate, continue reading this note.

New AFP retirement project of S/24,750: what does it consist of?

According to the explanatory memorandum of Bill No. 6544, by Congressman Segundo Quiroz, which has the signatures of five more parliamentarians from his bench, The objective of this proposal is to allow the extraordinary and optional withdrawal of up to 5 Tax Tax Units (UIT), which is equivalent to S/24,750, of your money accumulated in your Individual Capitalization Accounts (CIC). In this way, policyholders will be able to use these funds to mitigate the impacts derived from the economic recession and the possible repercussions associated with the El Niño phenomenon.

“In recent years, Peru has become a country with a higher cost of living, with declining investment and growth below what is necessary. And expectations for the near future are not very positive, so it is It is necessary to have economic resources that allow the population to face a period of high inflationary pressures. Likewise, it will help a large number of members to invest or start a business with the withdrawn resources. Others, for their part, will use this withdrawal to pay off debts. pending; and, finally, it would serve as savings,” reads the bill from the Magisterial Bloc parliamentarian.

AFP withdrawal of 5 UIT: how would it be carried out?

Congressman Quiroz’s bill exceeds in amount the other proposals of his colleagues, such as José Luna, Guido Bellido, César Revilla, among others, omitting the observations of the Minister of Economy and Finance, Alex Contreras, regarding limiting its scope to unemployed insured. In this sense, the new initiative of the Magisterial Bloc establishes the following procedure to withdraw up to 5 UITs from the AFP:

• AFP members will have to submit their request virtually or in person within 90 calendar days after the regulation of the standard comes into effect.
• Payments will be made up to the amount of 3 UIT every 45 calendar days, with the first disbursement 30 days after the application is submitted.
• If the member wants to cancel this request, he or she may request it only once 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.

How many AFP retirement projects have been presented in Congress?

To date, 27 bills have been presented to authorize AFP members to request a seventh withdrawal of the money accumulated in their pension funds, of which 11 seek the release of up to 4 UIT, three intend to increase the amount to acquire a property or pay debts through a mortgage guarantee, and most of them propose that citizens use their savings to face the negative impacts of the economic crisis.

In the last week, three more legislative initiatives that belong to parliamentarians Isabel Cortez (withdrawal of up to 4 UIT), Germán Tacuri (release of funds in case of terminal illness or cancer), and Segundo Quiroz (withdrawal of up to 5 ITU). Below, we detail all the proposals that are in Congress:

1. AFP Withdrawal from 2 UIT (S/9,900) – 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)
21. AFP withdrawal from 4 UIT (S/19,800) – Wilson Quispe (Perú Libre)
22. AFP withdrawal from 2 UIT (S/9,900) – César Revilla (Fuerza Popular)
23. AFP withdrawal of 90% of funds due to terminal illness – Katy Ugarte (Parliamentary Unity and Dialogue)
24. AFP Withdrawal from 1 UIT (S/4,950) – Jeny Lopez (Fuerza Popular)
25. AFP retirement in cases of terminal illness or cancer – Germán Tacuri (National Concertation Magisterial Block)
26. AFP withdrawal from 4 UIT (S/19,800) – Isabel Cortez
27. AFP Withdrawal from 5 UIT (S/24,750) – Segundo Quiroz (National Concertation Magisterial Block)

AFP Withdrawal: How is the debate on the projects going in Congress?

The last ordinary session of the Economic Commission of Congress was held on November 22 and featured the presentation of the president of the Central Reserve Bank, Julio Velarde, who presented his technical opinion on the negative impacts that a seventh withdrawal of pension funds would bring. .

Before Velarde, the Minister of Economy and Finance, Alex Contreras, also shared their arguments against; the head of the Superintendency of Banking, Insurance and AFP (SBS), María del Socorro Heysen Zegarra; and the president of the Pension Funds Association, Giovanna Prialé.

Likewise, in the first ordinary sessions, parliamentarians Segundo Montalvo (withdrawal of up to 2 UIT), Víctor Cutipa (release of up to 3 UIT), Guido Bellido and José Luna (disbursement of up to 4 UIT) had the opportunity to support the main scope of its legislative proposals that seek the release of the money accumulated in the CICs.

Despite the announcement by the president of the Economy Commission, César Revilla, about the possibility of having an opinion ready on the withdrawal of up to 4 UITs from the AFPs by the end of November, the ninth session of this parliamentary working group could not be held. take place on Wednesday, November 29 due to the call to the Plenary Session that approved the Public Sector Budget Law for Fiscal Year 2024.