The Economy, Banking, Finance and Financial Intelligence Commission of the Congress of the Republic approved the opinion on the reform of our country’s pension system, which maintains the multi-pillar contributory, non-contributory, semi-contributory and voluntary model.
One of the main changes is in the consumption pension, intensely promoted by Fuerza Popular. As a result of the technical meetings held with the Ministry of Economy and Finance (MEF), the opinion has reduced the proposed maximum limit of annual purchases from 12 to 8 UIT. Likewise, as a contribution to the Sunat A ticket with a maximum value of S/700 is considered for the calculation, in order to reduce its probable progressivity.
Every person over 18 years of age must choose the system to which they want to belong. Citizens who do not choose between the private or public system when they reach the age of majority will be compulsorily affiliated with the latter.
Meanwhile, the number of competitors has expanded to capture the funds of those affiliated with the contributory pillar, and now it will be possible to save in a bank, municipal fund, financial institution, cooperatives or insurance company.
Similarly, the contribution of independent workers is included with a progressive retention from 2% the first year, increasing 1 point every two years up to 5%, so that everyone has access to pension. It will apply from the third year after the law is published.
And the minimum pension?
The update every three years of the minimum pension, which must be approved by Congress at the request of the Executive, will first be submitted to the technical opinion of the Superintendence of Banking, Insurance and AFP (SBS) and the Fiscal Council. Meanwhile, it will be S/600 for those who have contributed for 20 years, and S/400 for the orphanhood and widowhood pension.
However, to access this minimum pension, no withdrawal of funds accumulated in the individual mandatory contribution accounts must have been made, “as of the entry into force of the law.”
The non-contributory pillar of the new system will include funeral expenses, and Congress will promote that the funds of AFP members without heirs be transferred to the State. In addition, the Special Early Retirement Regime (REJA) of the AFP goes from 50 to 55 years.
The creation of notional accounts in the ONP’s distribution system is also established, so that each retiree has access to a pension according to what they contributed. The MEF and the ONP work together to define the best transition system towards a system of this type.
There will be a bonus for moving from ONP to the AFP
The reform project, which must be debated in the Fullalso contemplates a recognition bonus for the transfer of ONP workers to the AFP.
Previously, the MEF had been againstsince a pay-as-you-go system, such as that of the National Pension System, implies that the resources are not individual.
Likewise, granting this bonus, regarding which the MEF has already expressed a position before the Constitutional Court, puts the sustainability of the National Pension System at risk, due to its high fiscal cost. This measure could cost S/581 million in the first year.
Source: Larepublica
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