Government authorizes new AFP retirement law: what happens after its promulgation?

This Thursday, April 18, the Government of Dina Boluarte enacted Law 32002, which empowers contributors to the Pension Fund Administrators (AFP) to access the withdrawal of up to S/20,600 from their pension fund. With the publication of the rule, the deadlines for making the disbursement effective would be accelerated, with which the procedure could begin during the month of May.

This norm—previously approved by the plenary session of Congress—was published in the Legal Norms Bulletin of the official newspaper El Peruano.

AFP Withdrawal 2024: what comes next after its enactment?

After authorization by the Executive, the next step is for the Superintendency of Banking and Insurance (SBS) make the operating procedure public within a maximum period of 15 calendar days, that is, the entity would have until Friday, May 3.

Likewise, according to the Finance expert, Jorge Carrillo Acosta, the start of withdrawal requests would take place from Monday, May 13. In that sense, The regulations for the new withdrawal of funds from the AFP should establish an adequate deadline for its implementation, similar to what was observed on previous occasions.

This period would allow pension fund administrators to properly organize the process, which includes the definition of a schedule based on the DNI for the submission of withdrawal requests, among other measures necessary to facilitate the process for members.

What is known about the schedule and in how many parts would the disbursement of 4 UITs be made?

As dictated by the rule, the disbursement would be made effective in four sets of 1 UIT each, which would be granted every 30 days. It would be as follows:

• Start of first withdrawal (up to 1 UIT): 06/12/24 (30 calendar days after request)
• Start of the second withdrawal (up to 1 UIT): 07/12/24 (30 calendar days after the first withdrawal)
• Start of the third withdrawal (up to 1 UIT): 08/11/24 (30 calendar days after the second withdrawal)
• Start of the fourth withdrawal (up to 1 UIT): 10/90/24 (30 calendar days after the third withdrawal).
Likewise, the deadline to request withdrawals would expire on 08/11/24, 90 days from the start of the operating procedure.

What can I do if I want to withdraw less than 4 UIT from my AFP?

“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 defense fund administrator ten calendar days before the next disbursement,” states article 2 of the law that authorizes the disbursement of up to 4 UIT.

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. It is one of the AFP leaders in the Peruvian market, highlighted for its investment management and member services.
• AFP Prima. Recognized for its extensive network of service and investment options; offers various retirement products.
• AFP Profuturo. It focuses on providing 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.