Seventh AFP withdrawal will be debated this Thursday, April 11 in the Plenary Session of Congress

The debate on the seventh retirement of the Pension Fund Administrators (AFP) already has a date. The Board of Spokespersons of Congress unanimously decided to prioritize the discussion in Plenary of the opinion that authorizes the universal disbursement of up to 4 UIT (S/20,600) from individual capitalization accounts, which will take place this Thursday, April 11.

Let us remember that this legislative proposal was approved, by majority vote, last Monday, March 25, in the Economy Commission, chaired by parliamentarian César Revilla. If the opinion is approved in the Plenary Session of the Legislature, the release of private pension funds would be carried out in four groups and without restrictions.

Board of Spokespersons agreed to schedule AFP retirement debate from 4 ITUs

The spokespersons for various groups agreed this Tuesday, April 9, to include the AFP withdrawal ruling of up to 4 UIT (S/20,600) in the agenda of the next plenary session to be held this Thursday, April 11. As is public knowledge, in recent weeks a series of requests from various congressmen have been presented to prioritize this issue. However, sufficient votes were not obtained at the Spokespersons’ Meeting held on April 4.

Now, the story was different and, finally, the Plenary Session of Congress will decide the course of this legislative proposal that is aimed at all contributors, except those who already participate in the special early retirement regime.

What would the AFP withdrawal procedure be like?

If the ruling of the law that authorizes AFP members to withdraw up to 4 UIT (S/20,600) from their individual accounts is approved in the Plenary of Congress, the disbursement modality would be carried out in four sets, each of up to S/5,150, until reaching S/20,600. Next, review the procedure:

1. Affiliates will submit their requests physically or virtually within 90 calendar days after the publication and entry into force of the law’s regulations.
2. An amount of up to 1 UIT (S/5,150) will be paid every 30 calendar days and the first disbursement will be made 30 days after the application is submitted to the AFP to which the affiliate belongs.
3. If the member refuses to withdraw funds from his individual capitalization account, he may request it from his AFP, only once, 10 days before the next disbursement.

Could the executive observe the withdrawal of the AFP if it is approved in Congress?

The Minister of Economy and Finance, José Arista, expressed his opposition to the AFP withdrawal ruling of up to 4 UITs that was approved on March 25. However, he has not made it clear whether he would intend to observe the proposal if it is given the green light in the plenary session of the Legislature.

“It has just been approved in the Economy Commission. All the potential consequences that this decision could have will be evaluated with them. “I could not anticipate now what actions could be taken because the decision is not in the hands of the Executive, but rather the Legislature,” he said in statements to the press.

AFP withdrawal: how many have been approved so far?

From April 1, 2020 to the present, six withdrawals were made from the funds of the Pension Fund Administrators due to the bills that were approved in Congress and that sought to face the impacts of the pandemic on the economy of our country.