AFP 2022 retreat: this Tuesday Economy Commission will debate opinion on the availability of pension funds

This Tuesday, the Committee on Economy, Banking, Finance and Financial Intelligence will debate the bill that empowers Pension Fund Administrators (AFP) to return up to 3 ITU to all members of the Private Pension System (SPP).

Let us remember that this issue was voiced for many months, however, this Monday they announced that it will finally become concrete in the agenda of that committee and thus it will be known whether it is appropriate or not.

The first to be happy with this measure was the congressman of Podemos Peru, José Luna Gálvez, who, through his Twitter account, felt confident that this initiative would be in favor of Peruvians.

“The pressure of #PodemosPerú and the support of #pueblo to our return PL #4UIT gave results. Tomorrow, Tuesday, April 12, in a special session, the #ComisiónDeEconomía will rule on the legislative initiative”, it can be read in its brief.

For her part, Silvia Monteza, president of the Economic Commission, in conversation with the newspaper La República, confirmed that this issue will be discussed on Tuesday, April 12, as it has been a commitment they have made with AFP affiliates. However, he made it clear that, while the opinion provides for the withdrawal of up to 3 ITU, this amount could vary at the request of the congressmen.

“Indeed, tomorrow we will also see this issue, it is a commitment that we take on as the Committee on Economics, [the withdrawal of] 3 ITU is being proposed. There, it may well fall or suddenly a new replacement text is being prepared,” said the congresswoman.

CONTRIBUTOR TO AFP WITHDREW NEARLY 66 MILLION SOLES IN THE LAST TWO YEARS

When this news broke about the debate on the withdrawal of the 4ITU, the deputy superintendent of AFP of the SBS, Elio Sánchez, said this morning to the Andean agency that contributors to the Private Pension System withdrew nearly 66 billion soles, with the five regulations issued to address the impact of the COVID-19 pandemic.

These are the following that were activated during the state of emergency: Law 31192 (32,219 million), Law 31068 (9,016 million) Law 31017 (19,647 million), DU 38-2020 (2,094 million), DU 34-2020 (2,966 million), which total 65,942 million soles.

“In total, we are talking about almost 66 billion soles that have been withdrawn from the first quarter of 2020 until last year,” said the official of the Superintendency of Banking, Insurance and AFP (SBS).

In addition, Sanchez said that 45% of the amount withdrawn has been made by people who were working.

He also added that in the Private Pension System (SPP) there are 8.5 million members, of which 28% “have an individual account at zero”.

“What we are seeing here is a valid concern of congressmen to address the urgency of Peruvian workers, but access to individual pension accounts is not the best way to address,” he said.

On the other hand, Elio Sánchez, said that according to the calculations made, in the segment of regular contributors from the age of 40, withdrawals made will impact 35% less on their future pensions

In this context, he assured that if the withdrawal of 100% of AFP funds is allowed to retire contributors, they would be left without EsSalud coverage, because in the system that allows the withdrawal of 95.5% of the fund, the remaining 4.5% is earmarked for their care at EsSalud.

(With additional information from Andina)

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