Seventh AFP withdrawal could be debated in the Consumer Defense Commission in 2024

The second legislature of the 2023-2024 annual session period of the Congress of the Republic was installed last Friday, March 1. One of the pending issues is the debate on the seventh withdrawal of the Pension Fund Administrators (AFP), which did not reach a consensus among the parliamentarians who make up the Economy Commission during the previous period.

Given this situation, the Commission for Consumer Defense and Regulatory Bodies of Public Services, chaired by legislator Wilson Soto, requested the Board of Directors to authorize the derivation of bills related to the release of up to 4 UIT from individual capitalization accounts ( CIC) to be ruled by this parliamentary working group.

AFP withdrawal could be debated at Codeco: what does this request consist of?

This Monday, March 4, the Consumer Defense Commission of the Congress of the Republic approved by majority to ask the Board of Directors to authorize the derivation of the various legislative proposals that seek a withdrawal of up to 4 UIT, equivalent to S/20,600, from the funds deprived of pensions.

As he had announced in statements to the media, Wilson Soto Palacios, the head of this working group, raised this request so that bills 6230/2023-CT, 6032/2023 CR and 5761/2023 CR , which authorize the disbursement of pensions, can be debated and ruled on in the Codeco. The proposal was validated with 9 votes in favor, 2 abstentions and 4 against.

Likewise, Soto Palacios highlighted that the analysis of this issue constitutes an important opportunity to alleviate the economies of families affected by the recession and promote responsible use of these pension funds that can be invested in productive activities and primary needs such as health. .

“The withdrawal of funds from the AFP is a recurring demand from members, who complain to me during work visits in different parts of the country. I am committed to carrying out technical and responsible work in the evaluation of these bills,” he said. Soto during the eleventh ordinary session of the parliamentary working group that he presides.

Finally, Congressman José Luna supported Codeco’s request and highlighted the importance of this debate that must consider the opinions of all organizations related to consumers and workers.

What did the president of the Economy Commission say about the AFP withdrawal?

Given the repeated requests from congressmen from various groups to prioritize the debate and approval of the seventh withdrawal of the AFP in the Economy Commission, its president, César Revilla, told Semana Económica that there is a broad consensus among the parliamentary groups to shed light green to pension reform. That could incorporate a bill for the disbursement of funds of up to 4 UIT, which is equivalent to S/20,600.

“We have no problem with it being four [UIT]. The MEF said that we are coming out of the recession. We could give the withdrawal and it will be put to the consideration of colleagues. If approved, it would be requested that it be prioritized on the Plenary agenda. “We are adjusting the text so that it has the greatest possible consensus,” he explained.

AFP withdrawal: what is the position of the MEF?

During an interview on RPP, the Minister of Economy, José Arista, pointed out that a possible withdrawal of the AFP “would affect the economy in general”, which has not yet recovered from the biggest drop in 31 years, according to official data from the National Institute of Statistics and Informatics (INEI).

“It is a bad decision by Congress to insist on more withdrawals because, of 10 pensioners, 8 no longer have savings for retirement. This not only affects the pensioner, but also the capital market, the development of bonds in the Peruvian market. It has many sides in which it affects. There is no longer a need for that,” he explained.

What AFP retirement projects are pending debate?

1. AFP Withdrawal from 2 UIT (S/10,300) – Segundo Montalvo Cubas (Free Peru)
2. AFP withdrawal of up to 4 UIT (S/20,600) – Digna Calle (Vamos Perú)
3. AFP withdrawal of up to 3 UIT (S/15,450) – 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/15,450) – Víctor Flores (Fuerza Popular)
8. AFP Withdrawal from 5 UIT (S/25,750) – Jaime Quito
9. AFP Retirement from 4 UIT (S/20,600) – 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 withdrawal from 4 UIT (S/20,600) – José Luna (Vamos Perú)
13. AFP withdrawal from 4 UIT (S/20,600) – Jorge Luis Flores Ancachi (Popular Action)
14. AFP withdrawal from 4 UIT (S/20,600) – Kelly Portalatino (Perú Libre)
15. AFP withdrawal from 4 UIT (S/20,600) – Luis Aragón (Popular Action)
16. AFP Withdrawal from 4 UIT (S/20,600) – Mariza Taipe (Free Peru)
17. AFP withdrawal from 4 UIT (S/20,600) – Flavio Cruz (Perú Libre)
18. AFP withdrawal of up to 3 UIT (S/14,850) – Edgard Reymundo (Democratic Change-Together for Peru)
19. AFP withdrawal from 4 UIT (S/20,600) – José Pazo (Somos Perú)
20. AFP withdrawal of 100% of funds in cases of death of the member – Digna Calle (Vamos)
21. RAFP retirement of 4 UIT (S/20,600) – Wilson Quispe (Perú Libre)
22. AFP withdrawal from 2 UIT (S/10,300) – 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/5,150) – Jeny López (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/20,600) – Isabel Cortez
27. AFP Retirement of 5 UIT (S/25,750) – Segundo Quiroz (National Concertation Magisterial Block)
28. AFP retirement from 4 UIT (S/20,600) – Alfredo Pariona (not grouped).