Victorhugo Montoya: “Congress has put the payment and increase of pensions at risk”

In 2022, Fujimorism promoted and approved the update of the recognition bonus from 2002 onwards. Although the rule appears to be beneficial, it lacks a central element: financing. Due to this, the sustainability of the public health system has been endangered. pensionsas well as an eventual increase in these.

-In 2023, the number of ONP pensioners increased, why is this?

-In 2023, the ONP granted 78,081 final pension resolutions, a historical record. We had a very important need to catch up with the insured. There was a stock of unresolved resolutions from 2021 and 2022. In 2024 our commitment is not to delay more than the 30 business days that the rule tells you that we must comply with. In some cases we will do it much faster.

-How did the institution’s finances close in 2023?

-We are like previous years in relation to funds and financing. That is, a collection similar to the year 2022 and the financing very similar in percentages with contribution from the Public treasure.

-To the extent that there is a law of Congress that updates the recognition bonus, still to be resolved in the Constitutional Court, what risk is there for the institution if it is declared constitutional?

-From the ONP there was an observation to the proposed rule, then it was approved at the insistence and we proposed to the Ministry of Economy and Finance that the unconstitutionality lawsuit be filed and that was accepted and presented. The risk is very important because the Public Treasury is the one that will have to finance the payment of the bond. We do not cover 100% of the pension payment with contributions, we only cover approximately 80%, the rest is covered by the Public Treasury. When they stress the Public Treasury with unforeseen finances, such as in this case the recognition bonus, they could precisely complicate the granting of pensions because there is only one money and it will have to come from somewhere and in the pension field they already have things budgeted . So, Our biggest fear is that there will not be much money to pay pensionsthe payment of pensions could be put at risk, but the worst thing is that what the Executive has proposed is put at risk, which is the increase in pensions.

-In August of last year, President Boluarte offered to raise pensions, but that increase was tied to the comprehensive reform of the system. Is there no way for them to go along separate lines?

-Minimum pensions necessarily require a law. This is how it is planned. That is, the amount of the minimum pension is required by law. Logically, right now, it is a joint effort with the Executive and the Legislature, because the financing is going to have to come from somewhere. A proposal of any type has to be properly funded. We are with the sword of Damocles of the recognition bonus, and it is very difficult for us to announce anything else right now.

-But do you agree with raising the pension? What is the technical position?

-What we have justified in the proposed rule, and this is in the explanatory statement, is that in the years that have passed inflation has increased, people’s standard of living has been harmed; Therefore, it is good to constantly keep up to date with the amount of your pensions. Furthermore, there is a ruling from the TC that says that. The number of beneficiaries would be more than 600,000 pensioners that we have.

-What is the level of pensions in the ONP?

-The minimum pension is S/500, paid in 14 installments because we pay gratification July and December. In the case of the maximum it is S/893, and in the case of the average it is less than S/700.

-Did the possibility of withdrawing resources from the AFP mean a significant loss of members in the ONP?

-There has been a small decrease, but not as significant as one might think. That is to say, it is not that it has put the ONP’s income in trouble, since Collection is very similar to previous years.

Pension loans

-It is observed that the pension loans provided by the ONP also grew. How does it work?

-The person who does not reach the retirement years, whether the 10, 15 or 20 years of contribution required by the norm, is allowed a few years of loan. One for those aged 10, two for those aged 15 and three for those aged 20 if you have not accumulated the required years. For example, if you need a pension of 20 and you are only 19 years old, then you come to the ONP, in quotes, lends you the contributions for that year. If you contribute S/200, in principle you owe me S/2,400. So, I ONP that calculate your pension, you get, for example, S/800 pension and I schedule with you that you are going to return those S/2,400 in 24 months, with an interest that is very small, and every month you will pay S/100. Thus, the first two years, instead of receiving S/800, you will receive S/700, and then when you cover the debt you already receive your full pension.