AFP 2025 Retirement of 4 UIT: New Congress project seeks to release up to S/21,400 of pension funds

A few days after starting the second ordinary legislature, new bills continue to enter the documentary process of Congress to restore the withdrawal of funds contributed to AFPs. This time, the Congressman Segundo Quiroz became the fourth parliamentary that proposes a similar measure, despite the opposition of the Ministry of Economy and Finance.

In accordance with the bill 10355/2024-CR, it is authorized in an extraordinary and optional way to private sector workers to release up to 4 UIT from their accumulated money in individual capitalization accounts. Said retirement may be made totally or partially, according to the decision of each affiliate.

AFP Retreat: What is the new bill?

The legislative proposal of Congressman Second Quiroz to enable an eighth withdrawal from the AFPs was presented this Wednesday, February 26 and will have to be analyzed in the Economy Commission. According to their exposition of reasons, it seeks to grant liquidity to citizens to mitigate the adverse effects of the financial crisis and the economic uncertainty of the country.

“Allow the extraordinary retirement of funds from the AFP It would contribute to reactivating domestic demand by injecting liquidity directly into the economy. When having these resources, citizens could-enter their expense on goods and services, which would stimulate production and employment, “says the law initiative.

In the second article of this legal formula, it is necessary that the withdrawal of up to S/21,600 of the private pension funds applies to all the affiliates to the Sppwith the exception of those who qualify in the modality of the unemployment retirement regime (fence). This process will be carried out in four armed:

• First withdrawal of up to 1 UIT: within 30 days after the submission of the application.
• Second disbursement: 60 days.
• Third retirement: within 90 days.
• Last outlay: until the maximum of 4 UIT is completed, within 120 days.

Finally, the Superintendence of Banking, Insurance and Private Administrators of Pension Funds (SBS) will be responsible for issuing the operating regulations within a maximum period of 30 calendar days, counted from the publication of the standard.

Know the AFP 2025 retirement projects

Since the beginning of February, four congressmen began submitting law proposals to authorize an eighth AFP retirement. The first one was the parliamentarian of Peru Libre, Américo Gonza, who proposes that affiliates to the private pension system release up to 4 UIT of their accumulated funds in their CIC.

Subsequently, the legislator of Podemos Peru worthy street presented a similar initiative for citizens with a terminal disease or cancer diagnosed with up to 95.5% of their pension funds. Under the scope of this law, its affiliate decides to migrate abroad, may have 100% of its contributions.

Finally, Congressman Darwin Espinoza and Second Quiroz were the last to propose law initiatives to authorize an eighth withdrawal of up to 4 UIT of private pension funds.

AFP retreat: How many were approved so far?

From April 1, 2020 to the present, seven withdrawals were carried out from the funds of the pension fund managers due to the bills that were approved in the Congress and that they sought to face the impacts of the pandemic on the economy of our country.

The first of them established the disbursement of up to S/2,000 in 2020, the second allowed the release of 25% of the funds and had a maximum amount of 3 UIT in that same year. Likewise, on April 13, 2020 a new outlay of S/2,000 for workers dismissed for the perfect suspension was authorized and on November 18 of that year, affiliates could withdraw up to 4 UIT from their funds.

In May 2021, a release of AFP Until S/17,600 and in 2023, the approved amount was until S/18,400. Finally, Congress approved in April last year the seventh withdrawal of private pension funds up to S/20,600.