A new proposal for the withdrawal of pension funds from contributors to the Pension Normalization Office (ONP) has been presented in the Congress. This is the project submitted by the parliamentarian Second Quirozwho seeks to allow ONP contributors to withdraw a significant portion of the funds public in different navies. This legislative proposal joins the others presented by the National Concentration Teachers’ Block.
As you may recall, the parliamentarians Katy Ugarte and Americo Gonzales They also presented similar ideas that contemplate the withdrawal of funds from the ONP. The parliamentarian for Cusco indicated in her project that the withdrawal would reach up to 4 Tax Units (UIT), that is, up to 20,600 soles. Meanwhile, the proposal presented by parliamentarian Gonza seeks to grant the same amount, increasing in turn the pension for current retirees up to S/1,200 and the return of contributions to those who moved from the public to the private system.
ONP withdrawal: what does the new project presented by the Magisterial Bloc say?
As mentioned, Segundo Quiroz, member of the National Concentration Teachers’ Block, presented the Bill No. 8432/2023-CRThis document establishes that contributors to the Office of Pension Normalization (ONP) fund can withdraw up to 5 ITU (Taxable Units); that is, S/25,750.
The justification that Quiroz presents for the approval of the project is to mitigate the adverse economic effects that workers suffered from Covid-19, the economic recession and unemployment.
The proposal also states that, if approved, it would begin individualize the pension funds of each member. In other words, the withdrawal of the 5 UIT would initiate a process of separation of pension funds in the public system.
This is the third bill on the withdrawal of ONP presented by the National Concentration Teachers’ Block. Photo: Congress
National Pension System: How does the public pension fund work?
He National Pension System (NPS)administered by the Pension Normalization Office (ONP) in Peru, works by collecting contributions from workers throughout their working lives, which are used to finance pensions for retirement, disability, widowhood and orphanhood. Members must have a minimum of 20 years of contributions to access a pension, and the ONP It is responsible for recognizing, qualifying and paying these rights, in addition to offering guidance on the necessary procedures.
In addition, workers’ contributions are used for a collective fund intended to pay current pensions, without generating profits for its members. Payments are made only in soles, and the amount maximum of pension is S/ 893.
ONP: How does the national pension system administrator work?
The Pension Normalization Office (ONP) is the body responsible for the administration of the National Pension System (NPS) in Peru. This pension system has been available since 1992, when it was created through the Decree Law No. 25967The ONP is responsible for managing retirement, disability and survivor pensions, as well as other benefits for insured persons who are part of the SNP. The SNP replaced the previous pension system administered by the National Pension Fund (CNP) and other pension schemes that existed in the country.
Source: Larepublica
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