The Plenary Session of the Congress of the Republic approved this Thursday, May 2, that nearly five million formal workers in Peru have 100% withdrawal of their Compensation for Time of Service (CTS) until the end of 2024, so would apply for May and November withdrawals. Initiatives of this nature were approved previously, within the framework of the coronavirus pandemic.
With 97 votes in favor, 9 against and one abstention, Parliament gave its approval to the joint opinion of the draft laws of the Economy and Labor commission.
First of all, the current signed law must be sent to the Board of Parties of the Presidency of the Council of Ministers (PCM). From its receipt, the Executive has 15 working days for its promulgation or observation. It is for this reason that two scenarios arise that prevent us from discerning an exact date for the CTS withdrawals.
On what date could the CTS be withdrawn? Possibles scenarios
In an optimistic scenario, the Executive – in line with the decision made by Dina Boluarte Regarding the withdrawal of up to 4 UITs from the AFPs – the regulation will be promulgated and from that moment on, according to the text of the opinion, the regulations must be published within a period of no more than 10 days.
This regulation will be in charge of the Ministry of Labor and Employment Promotion (MTPE) in its capacity as governing body and, therefore, regulates the CTS. In the case of the Superintendency of Banking, Insurance and AFP (SBS), although it has the power to issue complementary regulations, in the last optional withdrawal that ran until December 31, 2023, it declined to carry them out.
On the contrary, on that occasion he clarified that “No additional regulations are required for effective compliance. Consequently, the entities of the financial system and the savings and credit cooperatives (Coopac) must attend to the requests for withdrawal from the CTS, presented by the workers, in accordance with the provisions of the aforementioned Regulation and from the date of entry into force. validity”the entity specified through a statement dated June 4, 2022.
In this way, and as occurred in previous optional withdrawals, the withdrawal of money from the CTS It will be available almost immediately after the law and its regulations are published.
Jorge Carrillo Acosta, professor and finance expert at Pacífico Business School, comments that unlike the withdrawals of AFP funds, in the case of the CTS the withdrawal of the money could be made from the day following the publication of the regulations. as happened in 2021 and 2022.
Withdrawal of 100% of the CTS: adverse scenario
In a more conservative scenario, that is, with the observation of the Executive, the law’s signature must return to the ruling committees so that, after its approval, it returns to the Plenary with or without the details of the Executive, so that it is approved in that space. by insistence. The promulgation of the law in the official newspaper El Peruano will be left to Congress.
Taking these maximum terms into consideration, Carrillo Acosta estimates that the withdrawal of the CTS It would begin next June 4, in the hypothetical case that the autograph enters the Executive Branch on May 3.
José Arista, head of the Ministry of Economy and Finance, in recent statements has been against this initiative because he believes that workers should leave at least four salaries in their CTS accounts.. The current law on CTS (Law 30334) establishes that only the surplus of four salaries can be used in your CTS.
Source: Larepublica
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