The Congressional Economic Commission reconfigured in record time the project that was to jointly promote the reform of the Peruvian pension system and the limited withdrawal of up to 4 UIT (S/20,600) from the AFPs, and opted for a universal withdrawal for all members that no one had on the radar and that will now be debated with priority by the Plenary.
In total, 17 votes in favor and 3 against gave the green light to the replacement text of an opinion that, originally, included more than 70 bills for pension reform in almost 400 pages, but which in the end was reduced to just one.
From very early on, congressmen from various groups questioned that the pension reform was tied, in the same document, to the seventh withdrawal, considering that the latter was urgent, while the reorganization of the Peruvian National System (SNP) and the Private System of Pensions (SPP) needed more debate.
After a fourth intermission, the legislators returned with a document that agrees to the withdrawal for the 9 million members of the SPP. Previously, only those who did not contribute for 6 consecutive months prior to November 2023 would be considered.
Retirement in three armies
If approved in plenary session, the new wording specifies that members must submit their requests, physically or virtually, within 90 calendar days after the publication and regulation of the new law.
The first withdrawal will be 1 UIT (S/5,150) and will be made 30 calendar days after the application is submitted to the AFP where the affiliate belongs. The second, also for 1 UIT, will be finalized another 30 days later.
The last “will be for up to 2 UIT” (S/10,300), also counted from the previous fleet. It should be noted that, only in this last case, it is “up to”, that is, it does not have to cover the exact amount.
Aldo Ferrini, general manager of AFP Integra, maintains that there is a potential outflow of more than S/30,000 million (30%), out of a total of funds that is around S/120,000. He anticipates that portfolio profitability for those remaining will be affected.
Forgotten minimum pension
In this way, the debate for a minimum pension of S/600 that had been proposed for both ONP and AFP, in addition to the inclusion of independents, will have to be resumed in subsequent sessions, but now without the “political urgency” of the parliamentarians. , according to Ferrini.
It is not the only section that remains in the air. The original ruling proposed the entry of banks, savings banks and cooperatives, among others, to compete in the system against the AFPs. In addition, it sought mandatory membership for citizens aged 18 and over, and that 50% of active funds could be used to pay a mortgage loan.
A separate point, the Government had promised last year to raise the ONP pension from S/500 to S/600, but the increase did not materialize as it was tied to the approval of the pension reform. Retirees who began a hunger strike to demand compliance will also have to wait.
Some 7 million members would be left with zero balance
The Economy Commission indicates that, in the event that affiliates desist from withdrawing funds from their individual capitalization account (CIC), they may request its cancellation, one time only, 10 days before the respective disbursement.
It is estimated that around 6 million AFP members will be able to withdraw and, after that, around 7 million will be left with a zero balance.
The debate in plenary could be scheduled for tomorrow, Wednesday, March 27. If the votes are not reached in the Board of Spokespersons, it would be reviewed after Easter.
The Association of Contributors and Former Contributors of the AFP welcomed the initiative and requested speed for its review in the Chamber.
Source: Larepublica
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