If the new pension reform law is approved, what AFP withdrawal modalities could be carried out?

The Congress of the Republic left the opinion of the law to reform the pension system to air. Although this proposal was approved in two votes by the Plenary Session, the review of two reconsiderations by parliamentarians Germán Tacuri of the Magisterial Block and Elizabeth Taipe of Perú Libre, who seek to annul this controversial decision, was pending.

And the opinion of the Economy Commission chaired by César Revilla was only supported by 38 parliamentarians amid shouts, complaints and blows on the legislators’ seats. Although the fate of the pension reform could be decided in the Permanent Commission or in the next legislature, this legislative initiative proposes a series of changes that will affect citizens’ access to private pension funds.

AFP Retirement 2024: these are the 3 modalities to access your money

In addition to the extraordinary withdrawals that are approved by laws of the Congress of the Republic, in our country there are three modalities so that members of the Pension Fund Administrators (AFP) can access their money accumulated in their individual capitalization accounts. These are:

Early retirement

Since September 1, 2021, Law No. 31332 came into force, which standardized the age for an AFP member to withdraw money from their pension fund. Under the scope of this modality, citizens aged 50 or older can access 95.5% of their individual accounts if they are unemployed for 12 consecutive months.

In this way, they have three options to release their funds under REJA: conventional early retirement, unemployment release and retirement for workers who perform high-risk jobs.

Withdrawal of up to 95.5% of the pension fund

AFP members have the possibility of requesting the delivery of up to 95.5% of their total private pension funds, and the remaining 4.5% will be transferred to ESSalud. According to the Superintendency of Banking, Insurance and AFP (SBS), the scope of this modality benefits citizens who are 65 years old or older, those who access the Special Early Retirement Regime, those who have pensioner status under the programmed retirement modality. , those who receive a pension in the temporary income bracket and members who are under the mixed or combined income scheme.

AFP 2024 withdrawal to buy a home

In accordance with Law No. 30478, this benefit gives AFP members the possibility of having up to 25% of their money accumulated in their individual capitalization accounts to pay the initial payment of a property or amortize a loan. mortgage that has been used to purchase your first home.

It is important to note that this rule prohibits the use of these funds for activities such as renovation, remodeling, extensions, improvements or subdivisions of a property, as well as for the consolidation of mortgage debts.

What AFP withdrawals will be maintained with the pension reform law?

With a ridiculous majority, the Plenary Session of Congress approved last Thursday, June 6, the opinion of the law to modernize the pension system. However, the rule has not been able to be referred to the Executive Branch, because there are two requests for reconsideration to annul the irregular second vote that validated this reform.

Although both motions by congressmen Germán Tacuri from the Magisterial Bloc and Elizabeth Taipe from Peru Libre were scheduled in the Plenary Session, none of them were debated. In that session, the parliamentarians decided to grant powers to legislate to the Permanent Commission, a body that could resolve the status of the pension reform law, or failing that, it would be debated in the next legislature.

This legislative proposal contains a series of provisions that will affect the extraordinary withdrawal of pension funds, as well as the ordinary modalities:

• AFP members are prohibited from making an eighth withdrawalin case Congress promoted an initiative in this regard.
• Regarding the Special Early Retirement Regime (REJA), the minimum age to access this type of retirement is raised. 50 to 55 years.
• The Workers under 40 years of age will not be able to access early retirement of 95.5% of your AFP upon retirement. It will only be authorized for those over this age.
• The 25% withdrawal modality to access a home is the only one that remains unchanged.