The Office of Pension Standardization (ONP) has a facility for its members over 65 years of age who have not yet completed the contributions required to obtain a pension. This mechanism, known as a pension loan, aims to guarantee a proportional pension and lifelong health insurance for those who still need to complete their contributions to the pension system. National Pension System (SNP).
This pension loan is not a traditional monetary loan, but rather provides contribution units so that members can reach the minimum necessary contributions. In this way, it is ensured that beneficiaries receive a pension and permanent health coverage, providing economic and health security in old age.
What is the ONP pension loan and how does it work?
The ONP pension loan differs from other loans in that it does not provide cash. Instead, it allocates contribution units that allow members to complete the contribution years necessary to access a pension. Depending on the years of accumulated contributions, members can receive:
- A member with 13 years of contributions will have a guaranteed pension of 250 soles, but if he or she aspires to the 350 soles granted for 15 years of contributions, he or she has the option of taking out a pension loan for the remaining two years and obtaining said benefit.
- An affiliate with 17 years of contributions will have a pension of 350 soles, but if he wants to reach the maximum of 20 years and thus obtain a pension of 500 soles, he can access the pension loan to cover the three missing years of contributions.
This system is designed to help those members who, despite having reached retirement age, have not yet completed the required years of contributions.
ONP pension loan: what are the requirements to qualify?
To access the ONP pension loan, members must meet certain essential requirements. First, they must be 65 years of age or older, which is the minimum retirement age. In addition, it is necessary to have contributed at least 9 years to the SNP. This loan is not available for disability, widowhood, orphanhood or ancestry pensions.
Steps to request a loan from the ONP
The process for applying for a pension loan from the ONP is simple but requires attention to detail.
- Members must complete the retirement pension application form (DL No. 19990) and, in the “Accumulation of contributions” section, indicate that they wish to be evaluated by the ONP if they have not completed the necessary contributions.
- Once the application is submitted, the ONP will contact the applicant to provide detailed information about the loan and the corresponding monthly discounts.
- Members can submit an affidavit to prove more contributions and get closer to obtaining their pension.
How is the pension loan paid and how much would the discount be?
The pension loan is paid through monthly deductions from the member’s pension. The amount of the discount varies depending on the age of the retiree and the missing contributions. For example, those who request a proportional pension will see monthly discounts between S/50 and S/70. In the case of the general regime pension, the discounts will not exceed 30% of the monthly pension.
This system ensures that members can complete their contributions in a manageable manner, without drastically affecting their monthly income. In addition, in the event of the member’s death, the discount will continue to apply to the beneficiaries’ pensions, or the loan will be cancelled if there is no survivor’s pension.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
