What happens if AFP affiliates in Peru stop contributing money to their background?: This occurs with their individual accounts

He Private pension system (SPP) operates under the management of private entities known as Pension Fund Administrators (AFP). In this regime, the contributions of the workers are registered in a personal account, called the individual capitalization account (CIC), which allows the accumulation of funds for future retirement.

However, it may happen that affiliates stop working for different reasons, which prevents continuing with the Contributions monthly. For this reason, we tell you the details about the state of the accumulated balance. It should be remembered that, currently, the Congress of Peru presented a bill to allow a new retirement of funds.

What happens if AFP affiliates stop contributing money to their account?

The AFP association indicates that, if affiliates stop contributing, the fund will remain in their Individual capitalization accountwhich is registered in your name. In addition, the pension fund manager will continue to generate profitability for the worker, who will have the possibility to consult the account state at any time. This can be done from anywhere, either through the website or the mobile application of your AFP.

At the time of retirementyou will have the option to choose between receiving a pension through the various available modalities or withdrawing 95.5% of your accumulated fund. It is important to keep in mind that 4.5% of this amount goes to Essalud, which ensures that both the worker and his beneficiaries have the necessary coverage.

What is the bill that seeks a new withdrawal of funds from AFPs?

The congressman of Peru Libre, Américo Gonza, presented the bill No. 10153/2024-CR, which aims to allow the affiliates of the Pension Fund Administrators Remove up to 4 UIT, equivalent to approximately S/21,400. This initiative arises in response to the adverse effects faced by the Peruvian population in recent years, which include economic contraction, persistent inflation and increased cost of living.

If the proposal is given green light, the Affiliates They may ask their AFP to withdraw their funds, which will allow them to receive monthly disbursements of up to an ITU, equivalent to S/5,350, every 30 days. This procedure will be carried out until the total amount of four UIT is completed. In addition, the project stipulates that these funds They will be protected from any type of discounts, embargoes or withholdings.

What are the benefits of AFP affiliates?

In addition to having the individual capitalization account, where the contributions enter, they accumulate monthly and increase with the profitability they produce, the workers They have these benefits:

• Make voluntary contributions to your account, without limit.
• Have disability insurance, survival and funeral expenses.
• Receive Esssalud’s attention by contributing 4% of your pension.
• The pension will be calculated based on your bottom.
• Choose different pension modalities.
• Receive your pension in soles or dollars.
• Retire before the age of 65 if you meet the requirements of Law No. 29426.
• Have the opportunity, under certain conditions, that the ONP gives you a recognition bonus if you contributed to the SNP before incorporating into an AFP.
• Receive an account state every 4 months.