The Plenary Session of the Congress of the Republic approved the seventh extraordinary and optional withdrawal of up to 4 tax units (UIT) – equivalent to S/20,600 – from the private funds of the AFPs, which will be made available to members in four groups .
In an intense day held this Thursday, the Fuerza Popular bench requested a fourth intermission to reintroduce the pension reform to the debate, by annexing it to the scheduled list. From one moment to the next, the retirement project went from having 2 to more than 50 pages, and the debate lasted past 7 p.m.
As recalled, on March 26, the Economy Commission decided to separately review the pension reform and optional retirement projects of 4 UITs in order to speed up the vote in the plenary session this last Thursday.
The proposal from Fuerza Popular and some benches, such as Avanza País, was not well received by the rest of the congressmen, who in some cases accused the Fujimori party of trying to block the withdrawal of funds. Legislator José Luna raised a previous question and the separate vote for both devices could be resumed.
Finally, the withdrawal was approved with 97 votes in favor, 5 against and 5 abstentions. The Fuerza Popular bench itself avoided voting in red en bloc, despite the fact that it previously supported the annexation, like its peers from Avanza País.
The legislative vote, now with its own ballot box, on the pension reform, which must return to committee, experienced a different story: 74 votes against, 20 in favor and 9 abstentions.
How long will it take to withdraw the 4 UITs?
There is still no clear schedule for the withdrawal of up to S/20,600 from the AFPs. The law must still be sent to the Executive for promulgation, but it could also be observed.
Meanwhile, it is known that after its eventual publication in El Peruano – which could also occur at the insistence of Congress – the SBS will have 15 days to issue the regulations with the operating procedure. Subsequently, the AFP will establish the schedule, as occurred in the previous six withdrawals.
From that moment on, members must submit their request, physically or virtually, “within 90 calendar days after the regulations come into effect,” according to the approved opinion.
The withdrawal will take place in four fleets. It will be a payment of up to 1 UIT every 30 calendar days, “with the first disbursement being made 30 calendar days after the application is submitted to the private pension fund administrator to which the member belongs.” Currently, four AFPs operate in the local market: Integra, Prima, Profuturo and Hábitat.
“In the event that the member desists from continuing to withdraw funds from his Individual Capitalization Account (CIC), he may request it only once from the private pension fund administrator ten calendar days before the next disbursement,” says the signature of law.
Furthermore, the withdrawal is intangible and is not subject to discount, unless there is a judicial withholding order or food judgment involved, in which case up to 30% is withheld.
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More than S/30,000 million
Both the Ministry of Economy and Finance (MEF) and the four AFPs that operate in our country have warned that a new withdrawal would lead to the withdrawal of S/34,170 million from the Private Pension System (SPP), distributed among the 9 million contributors.
For its part, the Superintendency of Banking, Insurance and AFP (SBS) also considered that the seventh optional withdrawal of up to 4 UITs from the AFPs would cause some 7 million members to be left without a pension in old age, that is, with zero funds. in their savings accounts.
The pension reform is pending
The document that the Fuerza Popular bench tried to introduce was related to the comprehensive reform of the Peruvian pension system.
Among the sections that still need to be reviewed by the Economy Commission are the implementation of four contributory and non-contributory pillars, contributions through purchase receipts, a minimum pension of S/600 for all contributors, and the creation of new accounts. ‘notional’.
An actuarial analysis is also pending to know the fiscal impact and the true scope of the reform.
Reactions
Carlos Anderson, congressman
“The discussion of the design of a new private pension system is far from being finished. Here we have tried to push a particular vision, but not necessarily well constructed.”
Margot Palacios, Peru Libre congresswoman
“Today there was an attempt to smuggle a bill that has not been ruled on by the Economy Commission. The 9 million contributors are waiting for the money from their work.”
The key
Contributions. Both SBS and the four AFPs in the market have the previous experience for a seventh withdrawal.
Diary. There is also an initiative in Congress to release the amount of the CTS.
Source: Larepublica
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