Despite previous questions from the Ministry of Economy and Finance (MEF), the Executive Branch complied with promulgating Law 32002, which authorizes the optional and extraordinary withdrawal of up to 4 UIT (S/20,600) from the AFP pension funds, in a process that would materialize with the first payments in June.
There will be more than nine million members who will be able to use the funds, in up to four sets of 1 UIT (S/5,150) each, with a procedure similar to that of the six previous withdrawals. The Superintendency of Banking, Insurance and AFP (SBS) has warned that close to 80% have less than 1 UIT, so the withdrawal would average S/4,800.
The AFP estimates a potential exit of more than S/35,000 million from the system. Aldo Ferrini, general manager of Integra, points out that the market has been provisioned so that the impact on portfolio profitability is not significant for those who remain.
In this way, the Government of President Dina Boluarte once again resorts to the figure used by her predecessor, Pedro Castillo, in the face of the rising cost of living, even with the resistance of her own ministerial plan.
Jimmy Astocondor, a professor at Pacífico Business School, anticipates that the funds could be used for “short-term expenses, such as consumption or the payment of debts,” in a movement that he estimates will set the exchange rate needle moving—with the dollar as a safe haven asset for investors—or the strength of sovereign bonds.
The first S/5,150
According to Law 32002, the operational procedure for the withdrawal must be made official until May 3. SBS has a maximum period of 15 calendar days to do so, starting today, explains Jorge Carrillo Acosta, professor of Finance at Pacífico Business School.
Assuming that the maximum deadlines are met, the receipt of requests from affiliates who want to withdraw their money would begin on May 13. Previous experience shows that the four AFPs (Integra, Prima, Profuturo and Habitat) have released the funds almost immediately after the regulation.
Thus, 30 calendar days after the request is submitted, the first withdrawals would be consummated on June 12, 2024. The next ones would potentially occur on July 12, August 11 and September 10.
It should be noted that the deadline to request withdrawals would expire on August 11, 2024, 90 days from the start of the operating procedure. ❖
Congress and the petty cash of the AFP and CTS
Economist Melvin Escudero, president of El Dorado Investments, warned that the release of security funds for workers, such as that of AFP or CTS, distances Peru from its aspirations to integrate the OECD.
According to the specialist, the organization that brings together the most developed countries in the world “demands that these types of employee protection measures be incorporated as general and mandatory public policies.”
The free availability of the CTS, approved by the Economy and Labor commissions of Congress, would be scheduled in mid-May for debate in the Plenary.
The key
Data. Until the sixth withdrawal of the AFPs in 2022, more than S/87.9 billion left the system, equivalent to 9.4% of Peru’s GDP that year.
Old age. If the exit of S/35,000 million is finalized, only 11% of members would be left with pension savings.
Source: Larepublica
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