The reform of the pension system approved by the Plenary of Congress in the first vote seeks to progressively increase the coverage of affiliates through a structure based on four pillars for raising funds: contributory, non-contributory, semi-contributory and voluntary. In that sense, one of its most ambitious objectives is to incorporate independent workers as contributors.
To advance this purpose, the so-called Law of Modernization of the Pension System establishes a mandatory contribution rate for these employees who receive fourth or fifth category income, which will be applied gradually as of January 1 of the third year after the entry into force of the standard.
Self-employed workers would have to contribute to the pension system
Last Thursday, May 30, the Plenary Session of Congress approved the opinion on the reform of the pension system that was supported by the president of the Economy Commission, César Revilla. This legislative proposal establishes the creation of a consumption pension that captures 1% of annual purchases, which will be extracted from the sales receipts of the establishments.
In addition, a minimum pension of S/600 is proposed for members of the Private Pension System (SPP), the raising of the early retirement age from 50 to 50 years, a recognition bonus for the transfer of ONP workers to the AFPs, among other aspects. However, there is a measure that reaches the more than 6.5 million independent workers nationwide.
According to article 9 of the approved opinion, members of the System who receive income that constitute fourth or fifth category income are will apply a mandatory contribution rate “gradually starting January 1 of the third year after the entry into force of this law, “A rate of 2% will be applied during said year, which will increase by one percentage point every two years up to a maximum of 5%.”
This rate is set on the income received from each fee receipt issued by the independent worker. In addition, the people, companies and entities responsible for accounting will have to withhold the contributions indicated when they pay or credit fourth category or fifth category income provided for in literal e of article 34 of the Income Tax Law.
“In the case of independent workers who receive income not subject to withholding or when the withholding agent does not comply with the obligation to withhold the contributions, the withholding agent is jointly and severally liable for the unpaid contributions and for the obligations derived from them” , specifies numeral 5 of article 9.
For members of the ONP, these contributions have a tax nature and their administration will be the responsibility of Sunat, while for contributors to the SPP, the deadlines for declaration, withholding and payment will be carried out in accordance with the provisions of their regulations in force.
No more withdrawals of pension funds with a Fujimori proposal
Another of the changes incorporated in the pension reform opinion pending a second vote is a complementary provision that limits access to the resources of individual capitalization accounts for people under 40 years of age.
According to the approved substitute text, only “members who are 40 years old or older before the law comes into force will be able to choose between receiving the pension that corresponds to them in any type of retirement or requesting the AFP to deliver up to 95.5% of the total fund available in your Individual Capitalization Account (CIC) for mandatory contributions, in the amounts you consider necessary.
Finally, a measure is also included that prohibits AFP members from making an eighth extraordinary withdrawal from private pension funds, in the event that Congress promotes a bill 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 article 15 of the opinion.
Source: Larepublica
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