AFP Retirement 2024: what is missing for the disbursement of funds of up to 4 UIT to be completed?

With 17 votes in favor and 3 against, the Economy, Banking, Finance and Financial Intelligence Commission approved the opinion of the law that seeks to authorize AFP members to withdraw up to 4 UIT (S/20,600) from their accounts individual capitalization. After a fourth intermission, the parliamentarians decided to modify the initial proposal so that its scope is directed to all contributors and not only to the unemployed.

In this way, a multiparty agreement was achieved that was voted separately from the comprehensive reform of the Peruvian pension system, since it did not reach the respective consensus among the legislators of said working group. Now, the opinion was ready to be debated and voted on in the next session of the Plenary Session of Congress.

AFP Retirement 2024: what is missing for the disbursement of funds to be completed?

After the universal withdrawal of up to 4 UIT (S/20,600) from private pension funds was approved, this ruling was ready to be debated in the Plenary. According to the regulations of Congress, This legislative proposal must be sent to the Board of Directors so that the next plenary session can be scheduled. “No opinion can be debated that has not been published on the Congress website at least seven calendar days before its discussion in the Plenary, unless a waiver of one of these requirements is approved by the Board of Spokespersons,” it reads. article 78.

In that sense, the next Plenary Session of Congress would be this Wednesday, March 27, since the holidays for Good Thursday and Good Friday are coming. However, there is still no official communication in this regard. If it is sought to advance the debate on the opinion for a new withdrawal of AFP funds, an exoneration agreement would be needed in the Board of Spokespersons.

What is the new AFP withdrawal formula of up to 4 UIT about?

The new substitute text that was approved in the Congressional Economic Commission provides the optional withdrawal of up to 4 UIT (S/20,600) from the AFP and is aimed at all members without restrictionsunlike the previous proposal, in which only those who can prove that they have not received contributions during the last six consecutive months until November 30, 2023 could access it.

Regarding the procedure, members will be able to submit their requests virtually or physically within 90 calendar days after its publication and the law’s regulations come into force. Additionally, payments will be made as follows:

• The first payment will be 1 UIT (S/5,150) every 30 calendar days. This initial disbursement will be made 30 calendar days after the request is submitted to the AFP where the affiliate belongs.
• The second payment It will also be 1 UIT and will be made 30 days after the first disbursement of funds.
• The third payment It will be for up to 2 UIT (S/10,300) within 30 calendar days also counted from the previous withdrawal.
• If the AFP member refuses to withdraw the funds from his CIC, he may request it only once from the AFP, 10 days before the respective disbursement.

Finally, the withdrawal of private pension funds maintains its intangible status. Therefore, it cannot be subject to discount, legal or contractual compensation, or retention, whether by judicial or administrative order. However, this does not apply to cases of judicial or conventional withholdings of food debts, up to a maximum of 30% of the amount withdrawn.