AFP Retirement 2024: until what date does Dina Boluarte have to enact the disbursement of up to 4 UIT?

After the seventh withdrawal of up to 4UIT (S/20,600) from the Pension Fund Administrators (AFP) was approved, the Congress Plenary The autograph was referred to the Executive, which has an established deadline to promulgate the law in the official newspaper El Peruano or make any observation that it deems pertinent.

In that sense, there are two positions: those who hope that the law will be approved urgently and those who hope that it will be observed. In the content of this note we will tell you what the deadline for the representative is. Dina Boluarte to make his decision known.

Until what date does Dina Boluarte have to approve the seventh AFP withdrawal?

After receiving approval for the seventh withdrawal from the Pension Fund Administrators (AFP), which amounts to 4 UIT (equivalent to S/20,600), Congress sent the regulations to the Executive Branch on Friday, April 12. From that date, President Dina Boluarte has a period of 15 business days, excluding weekends and the May 1 holiday, to enact or make observations on the law. The last day to make a decision would be Tuesday, May 7.

How many AFPs are there in Peru?

In Peru, the system of Pension Fund Administrators (AFP) It is made up of a specific number of entities in charge of administering the pension contributions of workers under the private regime. To date, 4 operate AFP in Peruvian territory. These are the following:

• AFP Integra: is one of the AFP leaders in the Peruvian market, highlighted for its investment management and member services.
• AFP Premium: Recognized for its extensive network of care and investment options, it offers various retirement products.
• AFP Profuturo: focuses on offering personalized pension plans, in addition to having financial advisory tools.
• AFP Habitat: the most recent addition to the Peruvian system of AFPfrom Chile, has brought innovation and competition to the sector.

What are the AFP withdrawal methods?

Early retirement

The early retirement It is one of the alternatives that has captured the attention of AFP members. This modality allows workers to withdraw part of their funds before reaching the official retirement age under certain conditions. It is an option especially valued by those who face unemployment situations or urgent economic needs.

According to the Law No. 31332, a member aged 50 or older can use 95.5% of his or her funds if he or she is unemployed for 12 consecutive months. The remaining 4.5% is allocated to Social Health Security coverage. There are three ways to advance retirement:

By ordinary modality

• Be over 50 years old.
• Have a pension calculated in Private Pension Systemwhich must be greater than or equal to 40% of the average of your remunerations received and income declared during the last 120 months, that is, in the recent 10 years.
• Demonstrate 72 months of contributions in the last 120 months prior to requesting the extra benefit.

Due to unemployment

• Be at least 50 years old at the time of starting the process and less than 65 years old.
• Being unemployed for 12 months or more, continuously.
• Attach an affidavit of unemployment status.
• Present the document of a certain date that certifies the termination.

For risky work

1. To access this regime, high-risk work must be carried out such as underground mining extraction activities, open pit, in mining, metallurgical and steel centers that are exposed to toxicity, danger and unhealthiness, as well as work in civil construction, among others. .
2. Said pension will be financed with mandatory contributions, the Recognition Bonus—if any—and the State contribution through the Complementary Recognition Bonus.

Homebuying

According to the Law No. 30478, an AFP member can request up to 25% of their pension fund to purchase their first home. This option allows you to cover the initial payment or amortize the mortgage loan. These are the necessary requirements to request this type of disbursement:

1. Not having been or being the owner of a property acquired personally.
2. Not having been or being the owner of a property in a community property regime.
3. Not having been or being a co-owner, 50% or more, of a property registered or registrable in the Sunarp Property Registry.
4. You must not be the owner, either individually or under a community partnership regime, of a mortgage loan or have the position of co-debtor with a responsibility of 50% or more over a property registered or registrable in the Property Registry of the Sunarp.

Pension fund surplus

As members of the Private Pension System (SPP), insured people have the possibility of accessing a minimum pension.

For this, there are two types of pensionsaccording to Law No. 27617 and Law No. 28991, each of them with specific requirements.

The law proposes the creation of minimum pensions and the expansion of voluntary contribution alternatives for AFP members to promote a better pension culture. It allows the contributor to decide the amount of the pension they will access upon retirement to ensure that it is not less than the amount of the basic consumer basket published by the INEI.