Congress proposes to create a Single National Pension Fund

Congressman Jorge Luis Flores Ancachi, from the Popular Action bench, presented, last Friday, March 4, a bill that aims to create a Single National Pension Fund (Fonap), as well as its operating unit, the Management National Supervision of Pension Funds.

The legal proposal states that Fonap, through its operating unit, “has the purpose of regulating the procedure for the transit of funds deposited in the Pension Fund Administrators (AFP), within the framework of the Private Pension System (SPP). ) and the Office of Previsional Normalization (ONP) in relation to the National Pension System (SNP)”.

Likewise, it seeks to guarantee the transfer of the affiliates’ funds to the financial entities of their free choice. In addition, it programs the liquidation of pension payments for retirees and, in turn, promotes procedures and mechanisms so that contributors freely choose the entity that guarantees the highest return on their capital.

The initiative details that the application of the law will include former contributors and AFP contributors, within the framework of the Private Pension System (SPP) and the ONP with respect to the National Pension System (SNP). The affiliation to the Fonap of the new contributors will be obligatory in both the public and private sectors.

Formation of the Fonap National Board

The Fonap will be made up as follows:

• A representative of the Presidency of the Council of Ministers (who chairs it)
• A representative appointed by the Ministry of Labor and Employment Promotion.
• A representative appointed by the Ministry of Economy and Finance.
• A representative appointed by the Central Reserve Bank.
• A representative appointed by the Superintendence of Banking and Insurance (SBS).
• A representative appointed by the Ombudsman’s Office.
• A technical secretary appointed by the National Board.