A new bill to authorize the withdrawal of up to 100% of the Compensation for Time of Service (CTS) entered the documentary process of the Congress of the Republic. This time, the Fuerza Popular parliamentarian and president of the Economy Commission, César Revilla, has proposed that the deadline to make this disbursement be until December 31, 2024.
This is the thirteenth bill that pursues the same purpose, taking into account that the deadline to release the entirety of this economic benefit ended on December 31, 2023. Below, review its main scope and a count of all the projects that have been presented to date.
CTS Withdrawal: they present a new project to allow the release of this money until 2024
Fuerza Popular congressman César Revilla presented last Friday, April 12, bill No. 7569/2023-CR, which aims to authorize the free disposal of 100% of the Compensation for Time of Service (CTS) until April 31. December 2024. The main objective of this initiative is to mitigate the increase in prices of basic goods and services caused by the economic recession that the country went through.
“The availability of the CTS was approved until December 31, 2023, allowing many workers to access and solve necessary expenses that afflicted them. That is why, instead of requesting loans with high interests or resorting to illegal loans, they can have a tool such as the availability of their CTS, allowing them to use it to invest or refer it to relevant future expenses such as allocating it for education, retirement or a real estate purchase,” reads the explanatory statement of this project.
Furthermore, article 2 of the proposed law indicates that the workers included within the scope of the Single Ordered Text of Legislative Decree 650, Compensation Law for Time of Service, will be the beneficiaries. Finally, the Executive Branch must take charge of its regulations within a period of 10 business days, counted from the validity of the rule.
How many CTS retirement bills have been introduced?
To date, there are 13 bills in Congress that seek to authorize formal workers to withdraw up to 100% of their CTS. Three of these initiatives are already included in the opinion that the Labor Commission approved on Tuesday, November 7, 2023 and which is pending debate in the Plenary.
This legislative proposal intends that the deadline for disbursing the entirety of this economic benefit is until December 31, 2024. Likewise, there are six other projects that support the same temporality, three to be accessed until the end of 2025 and one to be able to withdraw it until 2026. Below, review all the proposals pending discussion in the Plenary:
- CTS Retirement until December 31, 2024 – Elva Julón (Alliance for Progress)
- CTS Retirement until December 31, 2025 – José Pazo (Somos Perú)
- CTS Withdrawal until December 31, 2026 – Segundo Quiroz (Perú Libre)
- CTS Retirement until December 31, 2024 – Edgar Reymundo (Together for Peru)
- CTS withdrawal until December 31, 2025 – Segundo Montalvo (Perú Libre)
- CTS retirement until December 31, 2024 – Raúl Doroteo (Popular Action)
- CTS withdrawal until December 31, 2024 – Jorge Coayla (Perú Libre)
- AFP withdrawal of up to 4 UIT and CTS withdrawal until December 31, 2025 – Luis Aragón (Popular Action)
- CTS withdrawal until December 31, 2024 – Flavio Cruz (Perú Libre)
- CTS Retirement until December 31, 2024 – Alejandro Soto (Alliance for Progress)
- CTS retirement until December 31, 2025 – Jorge Luis Flores (Popular Action)
- CTS retirement until December 31, 2024 – Gustavo Cordero Jon Tay (Popular Action)
- CTS retirement until December 31, 2024 – César Revilla (Fuerza Popular)
Source: Larepublica
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