In the last week, both the Executive and the Legislative They addressed important economic issues for Peruvians. On the one hand, the Economy Commission approved last Wednesday the opinion that would allow the provision of the withdrawal from CTS. The next day, the Government of Dina Boluarte enacted the law that gave the green light to the withdrawal of the AFP for up to 4 UIT, that is, 20,600 soles.
About, The Republic spoke with the ungrouped congressman Carlos Anderson. The member of the Economy Commission also provided details about his position in favor of the provision for the withdrawal of the CTS, as well as his opinion regarding the promulgation of the seventh withdrawal of the AFP by the Boluarte Government. For Carlos Andersonthe haste with which the president approved this provision does not correspond to an intention to improve her image among the citizens, but rather to align herself with the intentions of the parliamentary majority.
“I believe that it is effectively an acceptance of the structural weakness of the current regime. It is clear that it does not have any type of strength in the face of Congress. It really depends on the good will of the majority bloc that gives it its support. Confronting it under these conditions is “I imagine, from their perspective, difficult,” clarified the former member of Podemos Peru.
Anderson on the AFP system: “We must focus on having a minimum pension system”
On the other hand, Anderson He criticized the current makeup of the pension system. He emphasized that people who have the ability to save should not be told what they should do with their money, so efforts should be concentrated on creating a pension system designed for the Peruvian context.
“What a national pension system should be concerned about in a country with the characteristics of Peru; that is, with very low taxation. Taxation in the country that is barely 16% of the GDP. This is 7 percentage points less than the average in Latin America, which is 23%. “Not all of us have a sufficiently solid tax base that allows us to have an ONP-type system: a pay-as-you-go system that can ensure base pensions,” said the congressman.
The parliamentarian stated that factors such as volatility in employment and informality prevent the current system from working. For this reason, he stressed that it is necessary to have a system that guarantees minimum pensions. That is, the contributor, at the end of his or her work period, must have his or her savings that serve as a pension.
The basis of this system, according to the congressman, would ensure that the future pensioner can receive 70% of the income he received during his work period. Currently, it requires Anderson, Peruvian pensioners only receive 30% of what they earned. “Therein lies the challenge. We have to ensure that minimum pensions can be established that, at least, represent 70% of income,” he emphasized.
What is wrong with the AFP system, according to Carlos Anderson?
The congressman described the private pension system (SPP) as “perverse” by indicating that its structure transfers all the risks they may have to savers. This is reflected in the low pensions received by family members of contributors who die.
“The problem with AFP is that the design of the entire model is asymmetrical, which transfers all the risks to the savers and frees the AFP companies from any risk. I would have to change. Stop the ‘give me commission for this, commission for that’. (The AFP) don’t have any income, so, ‘I’ll take your money and keep it here until you’re old enough, even if you’re not going to have any pension or almost nothing.’ So the system is perverse in that sense.“, he stated.
What is the objective of the withdrawal of the CTS, according to Carlos Anderson?
For the parliamentarian, what was approved in the Congress It gives the person the opportunity to have a fund destined for a specific period: when they are unemployed. Likewise, he asserted that the implementation of unemployment insurance would be difficult due to the volatility in this sector.
“In other countries you pay unemployment insurance, so that, when you are unemployed for a number of months, you are paid as if you were employed. In Peru, with the volatility of employment that exists, it is impossible to have insurance of that nature. Without job stability it is difficult to have an unemployment insurance system,” said the parliamentarian.
Withdrawal of CTS: Carlos Anderson points out that there are the necessary votes to approve the law in Congress
During the session of the Economic Commission of the Congress, the vote was taken on the opinion that sought the provision of the withdrawal of 100% of the CTS. When asked about the meaning of his vote, Carlos Anderson was in favor. According to the parliamentarian, his position was due to his conviction in the freedom and responsibility of people. He noted that in the plenary session of Congress there will be the necessary votes for it to be approved.
“I do not believe in forced savings. I do not believe that there should be a paternalistic attitude on the part of the authorities. I believe that people are intelligent enough to decide what to do with their money,” explained the congressman.
Finally, the parliamentarian addressed those citizens who will have the opportunity to obtain these economic benefits.
“If you have debts with high rates, pay the debts. Don’t spend it on consumption. If you don’t need it to pay debts or to consume immediately and you don’t trust the AFPs as the best mechanism, then invest it in some savings account and another type of things,” he concluded.
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.
