The AFPs seek that the State contributes to pensions

The Association of AFPs (AAFP) held a meeting at the Government Palace with President Pedro Castillo to support their proposals for a possible reform of the pension system.

According to Giovanna Prialé, president of the AAFP, the aim is to achieve a reform in which access to a decent retirement prevails regardless of the employment situation in which Peruvians work. “That is, not just talking about a system for dependent workers, but including independent and informal workers,” she said.

In this sense, it is necessary to highlight that currently 35% of the elderly population is affiliated to a pension system, a figure that, compared to 2019, registers a decrease of -3.5%. Of the total affiliates, 18% are in the ONP, 10.6% in AFP, 3.3% in Cédula Viva and 3.1% in another. (See infographic)

What do the AFPs propose?

The AFPs, in the voice of Prialé, propose a multipillar proposal to establish old age without poverty.

They also propose the saving mandatory “with creative tools seen in other countries” through tax incentives and, finally, a series of matching contributions for the benefit of independent and informal workers.

On this last point, Prialé pointed out that “for every sun that the worker puts in, the State will put in a sun”, capitalizing over time to ensure that the contributor has a better pension.

It is worth emphasizing that these criteria announced by the president of the AAFP were already raised a couple of years ago, when a reform of the pension system was also on the table. This newspaper contacted various voices linked to the AFP Association to delve into the technical details of its proposal, but they only managed to say that there will be news in the coming days.

First they must be honest

The former Minister of Economy Pedro Francke considers that the AFPs should clarify if his proposal – which puts the responsibility on the State – will come hand in hand with a reduction of their own commissions.

“The problem with the AFPs is that they have commissions very high. The State puts the money, so, will they charge more commissions on the balance? The more money there is in the AFPs, the more they will charge? The key question is: will they charge more because the State gives money? That has to be clarified before landing any proposal of this type, ”he noted for La República.

Francke welcomed the promotion of a pension reform, but asked that it respond to a comprehensive nature with an important public system that ensures the basic rights of affiliates and, furthermore, that it not be subject to an oligopoly —like the current private pension system — that “depends on the actions of the world”.

Executive seeks more equitable pensions

Bill 2422/2021-PE presented by the Executive, in which supplementary credits are approved to deal with COVID-19, has a chapter that allows affiliates who migrated from the National Pension System private access to a fairer pension.

It is considered the case that “due to fortuitous causes beyond their control they are unable to accumulate a sufficient fund they would have received if they had remained in the SNP, despite having made a similar contribution effort” when switching to the SPP. It is proposed, in essence, to restore the contributions with a participation of the State.

reactions

Pedro Francke, former Minister of Economy

“The AFP They have very high commissions. The State puts money, then they will charge more commissions for overbalance? (…) that has to be clarified before any proposal”.

Giovanna Prialé, president of the AFP Association

“That for every sun that the worker puts, the State puts a sun, and that is capitalized over time to ensure that the worker has pensions that are much more in line with their quality of life.”