AFP withdrawal: Invoices would provide access to funds of S/19,400 or S/14,800 this 2023

At least two new bills were presented to the Congressduring this week, to allow affiliates of the private pension system can access withdrawals of S/19,400 or S/14,800 from their pension fundsas a measure to deal with the economic crisis and high inflation in Peru.

There first legislative initiative which, introduced on Tuesday by lawmaker Víctor Cutipa of the Perú Bicentenario parliamentary caucus, allows members to have the extraordinary retirement of the private pension funds up to 3 fiscal units (ITU) or S/14,580.

Congressman’s Proposal Supports What Was Said extraordinary retirement it will lighten the pockets of Peruvians in the current economic context. Moreover, he specifies that the disbursement of funds it also seeks to reactivate the economy of Peruvian families.

As part of the procedure, the text of the legislative proposal points out that the extraordinary retirement Since AFP It will be carried out “by remote, virtual or face-to-face request, and only once”, within 90 calendar days, once this law has been approved.

As for payment of money From the admin, the invoice text says that up to 1 ITU or S/4,950 will be paid every 30 calendar days, after submitting the withdrawal request.

With the same request, the deputy of the parliamentary caucus Podemos Perú Digna Calle presented on Wednesday a law Project which allows members of the private pension system make a new withdrawal of your funds up to a disbursement of 4 UIT or S/19,800.

However, said opinion, prepared by the former second vice president of the Congress of the Republic, states that the standard would not be applicable to those who qualify to access the Early retirement scheme for unemployment.

If this bill is approved, the Member of Parliament for Pension fund administrator (AFP) You will proceed with the request for optional withdrawal of funds up to an amount equivalent to 4 ITUs compared to the total entered in your Individual Account for the Capitalization of Compulsory Contributions, on the date of submission of your request.

On the proposal of these new advance withdrawals AFP funds, David Tuesta, former Minister of Economy and Finance and President of the Privy Council for Competitivenesshe said GlobeLiveMedia that to date, there are five bills in the legislature that propose an infinite number of populist measures on pension funds.

“Each initiative has different things, we ask that 50% of the funds to pay debts; Others request that 4 ITUs, 3 ITUs or 2 ITUs be available for the emergency rescue; another proposes that 100% of their funds be withdrawn from those who turn 40. It doesn’t make sense anymore new retirement“, argued the economist.

Likewise, Tuesta said that these legislative proposals They only focused on a “popular measure” which is beginning to weigh on the country’s economy and which worries foreign investors because these withdrawals will begin to depreciate the value of Peruvian bonds invested in AFPs.

“It is initiatives they are misfocused because it is not urgent for the formal workers, which are backed by a CTS if they lose their jobs. Besides, the inflation it is starting to decline in the country, ”commented the ex-minister.

The economist also explained that the pension funds which were previously removed were carried out mainly by workers who were in the informal sectorthose who had little funds.

“So those who have remained at this stage are essentially purely formal workers who have a job and who are not vulnerable. This reflects the lack of ideas and political opportunism by some members of Congress who present these billsTusta said.

For its part, Víctor Fuentes, director of the Peruvian Institute of Economics (IPE)indicated at GlobeLiveMedia that after six withdrawals in the last three years, the affiliates who still have pension funds are those with the highest incomes.

According to information from Central Reserve Bank (BCR) In Peru, in 2021, 45% of affiliates, or 3.6 million, no longer had a pension fund in the private pension system.

“On the other hand, his RBC calculates that a 55-year-old person who has liquidated his pension fund and returns to contribute indefinitely to his AFP until retirement age (65), he could receive a pension equivalent to only 8% of his last salary,” Fuentes said.