The Plenary Session of Congress approved last Thursday, April 11, by majority, a new withdrawal from the Pension Fund Administrators (AFP), after various oppositions were expressed, mostly from the Fujimorist bench, which argued that it was in favor. of the proposal, but with a general reform of the pension system. After several hours of debate, the ruling authorizing the disbursement of up to 4 UIT (S/20,600) was validated by the Legislative Assembly.
The next day, the president of Congress, Alejandro Soto, announced that the law was sent to the Executive Branch for promulgation or observation. Now, the Government of Dina Boluarte has a defined deadline to rule on this initiative, which would allow the disbursement of pension funds to millions of affiliates.
How much time does the Government have to respond?
After the signing and delivery of the law’s signature last Friday by the president of the Congress of the Republic, Alejandro Soto, the Executive Branch will only have 15 business days to rule on the approved project, since according to article 79 of the Legislative regulations , that is the time established for the government to make any observations.
If the Executive Branch observes the law, it will return to Congress to be evaluated. This would mean that the Legislative Branch could approve it upon insistence, but not before taking a tour again of the Economy Commission and the Plenary Session of Congress.
Otherwise, and the president approves the opinion, it will be made official. In the event that the 15-day period has expired and the president does not take a position either to observe or approve it, the president of Congress will have the responsibility of promulgating it, according to article 80 of the Congress regulations. This article also indicates that the law will come into effect from the day after its publication in the official newspaper El Peruano.
AFP 2024: when would payments start?
The signature of the law that allows a new withdrawal of funds from the AFP was sent to the Executive Branch last Friday, April 12. President Dina Boluarte has 15 business days, without counting weekends or holidays, to decide whether to promulgate it or return it to Congress with the respective observations. If he approves it and orders its publication in El Peruano before May 6, the law would come into effect the next day.
The Superintendency of Banking, Insurance and AFP (SBS) would then have 15 additional business days to prepare the corresponding regulations. If the SBS takes the full deadline, the release of the funds could take place as of the second half of May.
How do I know which AFP I am in?
If you want to know which AFP you are affiliated with, you can do so through the website of the Superintendence of Banking, Insurance and AFP. This Government portal offers a service that allows you to identify which Pension Fund Administrator each taxpayer belongs to.
Verifying your affiliation to an AFP is a free process and accessible at any time of the day. Follow these steps to do it:
- Visit the SBS portal online: https://servicios.sbs.gob.pe/ReporteSituacionPrevisional/Afil_Consulta.aspx
- Select the ‘AFP affiliation report’ option.
- Enter the type of ID document, your number and the password for your SBS account.
- Upon completing the process, you will be able to view your membership data
If you do not yet have a registered account on the SBS services website, the portal allows you to create an account free of charge and enabled 24 hours a day.
How will this new withdrawal impact the economy?
According to the monetary policy manager of the Central Reserve Bank of Peru, Carlos Montoro, this new withdrawal would not generate a considerable impact on inflation.
One of the immediate consequences of the withdrawal of AFP funds will be an increase in long-term interest rates. This is because The AFPs will have to sell part of their investments to be able to pay members who request the withdrawal of their savings.
In macroeconomic termsit is expected that a small portion of the funds released will be used for consumption, while the majority will be used for savings or paying debts.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
