He National Pension System (SNP), in force since 1973, aims to guarantee an income to workers upon retirement. Administered by the Office of Pension Standardization (ONP) Since 1994, this system has been based on solidarity and intangible contributions.
The pension you can receive under the SNP depends on several factors, including the years of contributions. Therefore, below we explain how much you can receive as a maximum and minimum when you retire and what the proposal is that seeks to increase these values.
ONP: How much is the minimum and maximum pension you can receive?
The amount of the pension in the SNP varies according to the years of contributions and the average of the remunerations received. The minimum pension that a retiree can obtain is S/500, as long as he or she has accumulated 20 or more years of contributions.
On the other hand, the maximum pension amount under this system is S/893. This limit applies to those who have had a working career with good remuneration and sufficient years of contributions. It is important to note that these amounts seek to reflect a balance between the contributions made and the capacity of the system to offer a sustainable pension in the long term.
What are the characteristics of ONP pensions?
Pensions administered by the ONP They are characterized by being supportive and intangible, which means that the contributions of active workers finance the pensions of current retirees.
The benefits of SNP They include not only retirement pensions, but also early pensions for men and women who meet specific requirements. For women, early retirement is permitted at age 50 with 25 years of contributions. For men, the same conditions apply, allowing early retirement in similar situations.
In addition, the SNP provides pensions for disability, widowhood, orphanhood and ancestry, ensuring comprehensive protection for members and their families.
ONP and pension reform: will the minimum pension increase?
It was recently approved in the Congress the pension system reform which proposes increasing the minimum pension from S/ 500 to S/ 600. This proposal is part of a comprehensive reform of the pension system, which also includes other significant modifications.
The draft resolution proposed by the Economic Commission suggests a pension system based on four pillars for fundraising. In addition to increasing the minimum pension, the reform proposes that self-employed workers make mandatory contributions gradually.
What happened to the pension reform?
On June 6, the Plenary Session of Congress approved the bill to modernize the Peruvian pension system. With 38 votes in favor, 10 against and 16 abstentions, this law was ratified, which aims to improve the coverage and efficiency of the pension system. However, not all parliamentarians agreed with the decision.
Congress members Germán Tacuri and Elizabeth Taipe made requests to annul the second vote and request a new debate on the comprehensive reform of the pension system. These reconsiderations are pending and could be debated in the next legislative session that begins at the end of July.
What is the ONP?
The Pension Normalization Office (ONP) is a Peruvian institution in charge of administering the National Pension System (SNP). Its main function is to manage and ensure the payment of retirement, disability, widowhood and orphanhood pensions to SNP members.
The ONP is funded by contributions from workers and employers, and ensures that contributions are used to provide pension benefits. In addition, the ONP works to modernize its services, promoting transparency and efficiency in the management of funds, to ensure adequate social protection for its members.
Source: Larepublica
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