Half of a mortgage will be paid with the AFP

Today the reform of the pension system will be debated in the Economy Commission of the Congress. In the text presented last Friday the 22nd, a complementary provision was introduced that opens the possibility of withdrawing 50% of your individual capitalization account (CIC) to pay a mortgage loan.

This article, which had not been touched upon throughout the discussion, allows the member to use half of their fund to pay mortgage loans of any type they have, be it a beach house, second home, among others.

“All contributors of retirement age who accredit at least two hundred and forty effective contribution units, whether mandatory or voluntary contributions for provisional purposes at the time of retirement and do not make contributions, have the right to receive the minimum pension. withdrawals of funds from the entry into force of this law, with the exception of the provisions of article 40 of the Single Ordered Text of the Law of the Private Pension Fund Administration System, approved by Supreme Decree No. 054-97-EF” , points out the article.

Within the current scheme, the member can have 25% to pay the initial payment of his first property, as long as it is a mortgage loan granted by some entity of the Finance system.

Aldo Ferrini, general manager of AFP Integra, pointed out that this type of openness to withdraw funds for an issue other than pensions goes completely against building a solid system, whether in AFP or in the ONPand “there is no reason why, overnight, it should be added without any type of analysis of its impact.”

Seventh retreat

One of the aspects that have generated the greatest controversy within the reform opinion is the possibility of a seventh withdrawal of pension funds, of up to 4 UIT (S/20,600). But it will not be for everyone, since Only AFP members who have not contributed to their CIC by November 30, 2023 will be able to access it. Those qualified do not apply to the Early Retirement Regime for Unemployment either.

For the Association of Contributors and Former Contributors of the AFP, pigeonholing retirement within the reform is a “slavery” design, in part because, despite the increase of S/100, there are few Peruvians who comply with contributing 20 years to the pension system. . “The congressional move responds to the interests of Fujimorism, Cerronism and acciopopulism, since it prevents the withdrawal of the money generated by the workers,” they indicated to this medium.

What else does the reform seek?

The opinion also proposes that people affiliated with the ONP They may be transferred to the AFPs at any time, in accordance with current regulations, having the right to the recognition bonus for the contributions made, “plus an adjustment for accumulated inflation.”

In addition, it places a floor for the pensions of both the ONP and the AFP. In this way, the minimum retirement and disability pension will be set at S/600, while the pension for orphanhood and widowhood will have a minimum of S/400. But it will only work when it has been contributed for 20 years.