Congress will insist on the withdrawal of 50% of AFP funds for mortgage loans

After the authorization of the withdrawal of up to 4 UIT (S/20,600) from the AFP for all members of the system was approved in committees, the Congressional Economy Commission resumed the debate on the pension reform that was tied to said device and agreed to invite the head of the MEF, José Arista, as well as the head of the Sunat, Gerardo López, for the session next Thursday, April 4.

The president of said parliamentary working group, César Revilla, highlighted the importance of summoning both officials to evaluate the pension reform proposal, whose estimated fiscal cost alone in the first year of application exceeds S/1.3 billion.

“We are going to invite the minister next Thursday at 2 pm, because on Wednesday we have an investiture session and it will be impossible for us to meet. We are also going to invite the superintendent of Sunat, for one hour each, so that they can give their opinion on the project presented,” he said.

In detail, Congressman Revilla highlighted that the consumption pension – contributions derived from the VAT for each purchase made by the member – would have a fiscal cost in the first year of S/400 million, while the readjustment of retirements from the National Pension System (SNP) would have an expected impact of S/782 million, according to the information presented by the Executive Branch.

For example, the non-contributory pension for people in extreme poverty would have a fiscal cost of S/68 million, while the state guarantee benefits for members of the Private Pension System (SPP) would reach S/15 million.

50% for the beach house

During the debate, several congressmen raised objections to the new wording of the project that was not approved at the last meeting. Among them, Alejandro Cavero harshly criticized a withdrawal of up to 50% of the funds available for the payment of a mortgage loan of all types, despite the fact that there is already an optional withdrawal of 25% for a first home.

“Although it is the credits in force today, we would be talking about a possible almost total withdrawal of AFP funds, which would mean the elimination of the system forever, and we will no longer worry about reforming it,” he said.

Likewise, Cavero believed that those who choose to withdraw their funds should not later aspire to a pension in the non-contributory pillar, as it would be “stretching their hand to the State after making a bad decision.”

For his part, Congressman Carlos Anderson highlighted that the MEF must present an “actuarial study” to support the fiscal perspective that the new Minister Arista himself anticipated regarding the reform.

In the opinion of economist Anderson, the commission should work on a 75-year perspective and simulate the entire demographic profile of the country before approving a new retirement scheme. He referred at this point to the contribution through purchase receipts.

“In the fifth year, on the issue of 1% VAT, it is said that there will be a 5% drop in evasion, which would be extraordinary […] The question is what happens if that drop does not occur? How is it compensated?” he accused.

It should be noted that, in the words of Revilla, this contribution from the voluntary pillar is intended for young people who reach the age of majority and with an annual limit of about 12 UIT so as not to impact the accounts of the national treasury. “A person who begins to appear in the system from the age of 18, even if they have the minimum wage, could in 30 years have a fund that allows them a pension, that is the intention and it is thought that way,” he said.

Confiep against new withdrawal

Confiep called on political forces “to stop the destruction of retirement savings and prioritize the reform of the pension system,” in reference to an eventual new withdrawal of funds.

For its part, the CGTP criticized that the proposal ignores ILO Convention No. 102, which states that employers should also contribute to workers’ funds, and not only the latter and those with a higher retirement age.