Congressional pension reform seeks to prohibit new AFP withdrawals

The process of withdrawal of private pension funds began last Monday, May 20. To date, more than 1 million 167,651 affiliates have already registered their disbursement requests, which will be enabled until August 17, within the framework of the free period established by the official schedule. While this is happening, the Plenary Session of Congress decided to put a lock to restrict access to the amounts in the individual capitalization accounts.

The proposal approved by the highest assembly of the Legislative Branch is integrated into the opinion on the reform of the pension system promoted by Fujimorism. Precisely, this political group was one of the authors who promoted the creation of a consumption pension that captures a rate of 1% of annual purchases for up to 8 UIT (S/41,200).

Pension reform prohibits new AFP withdrawals

The opinion that proposes the reform of the Peruvian pension system was approved last Thursday, May 30, in the Plenary Session of Congress. Among the main changes proposed by the Economy Commission, chaired by César Revilla of Fuerza Popular, the contribution for consumption stands out, which will consist of 1% of annual purchases, which will be extracted from the sales receipts of the establishments.

Likewise, the rule pending a second vote seeks to raise the early retirement age from 50 to 55 years, establishes a mandatory contribution rate for self-employed workers and a minimum pension of S/600 for contributors to the new system, among other scopes. This legislative proposal also includes a measure that prevents AFP members from making an eighth withdrawal, in the event that Congress promotes an initiative in this regard.

“As of the entry into force of this law, the total or partial withdrawal of the funds accumulated in the individual accounts of mandatory contributions by SPP members is prohibited, except as stipulated in articles 40 and 42. A of the Single Ordered Text of the Law of the Private Pension Fund Administration System, approved by Supreme Decree No. 054-97-EF”, reads in article 15 of the norm approved by Congress.

This only exception established by the reform of the Peruvian pension system refers to the payment of the initial fee for the purchase of a first property, the amortization of a mortgage loan, cases of early retirement or the return of contributions due to terminal illness or cancer diagnosis.

AFP withdrawal: how many have been approved so far?

From April 1, 2020 to the present, six withdrawals were made from the funds of the Pension Fund Administrators due to the bills that were approved in Congress and that sought to face the impacts of the pandemic on our economy. country.

The first of them established the withdrawal of up to S/2,000 in 2020, the second allowed the release of 25% of the funds and provided for a maximum amount of 3 UIT in that same year. Likewise, on April 13, 2020, a new disbursement of S/2,000 was authorized for workers laid off due to the perfect suspension and on November 18 of that year, members could withdraw up to 4 UIT from their funds. One of the last authorizations to release the AFPs up to S/17,600 was given in May 2021 and last year, the approved amount was up to S/18,400.

Currently, more than 1 million 167,651 citizens have already registered their requests for withdrawal from private pension funds, whose first payment from the ITU would begin on June 14 at the latest.