Withdrawal AFP 2023: 10 keys to know about the proposed withdrawal up to 19,800 soles

The eyes of millions of Peruvians are once again on the money they have accumulated for their retirement. The possibility that this 2023 a further withdrawal from the Pension fund administrators (AFP) caught your attention. Not just one, but at least three bills have been formulated in the Congress of the Republic, which are waiting to be evaluated and given the green light to reach the plenary session. These are being promoted amid criticism that they are ‘populist’ and ‘reckless’ proposals.

The truth is that millions of affiliates think differently and believe that a possible new AFP retirement (this would be the seventh in recent years) would allow them to access the money from their money pay their debts, cope with the current shortage, buy necessary things for their house or, quite simply, put them to use as they envision. It is undeniable that there is also a large group who, if the proposal goes through, have no interest in touching their funds, because they fear that it will affect the amount they will receive monthly when they reach the old age. To better understand the subject, in the following lines some keys will be given.

According AFP AssociationFollowing the previous six withdrawals, there are almost two and a half million Peruvians who have been left with “zero sole in their funds”. For Joaquín Rey, union adviser, these disbursements have created “a ticking time bomb” in the retirement system and the Peruvian economy. The concern is that these people, as they age, become an ‘unprotected population’ without a pension to enable them to survive.

Luis Miguel Castileformer Minister of Economy and Finance (MEF), was in the same line as Rey, noting that the approval of a new withdrawal from the AFP “it is not necessary” in the current circumstances. “It’s not prudent, it seems like a populist measure to me. Also constitutional Court he ruled in favor of these withdrawals, establishing certain parameters, which would be in the event of a pandemic or a disaster, which does not occur, ”he said.

According to Castilla, a new outflow of money from private pension system This would only benefit “people who don’t need it”, since he stressed that the health emergency due to the coronavirus is over and that if we see the economy It is not because of this phenomenon, but because of the political crisis that Peru is going through, where the population has been marching for more than two months to demand, among other things, the resignation of the President of the Republic, Dina Boluarte, and the advancement of general elections.

“What Congress should approve is the request for powers from the Ministry of Economy and Finance, because what they want is to generate investments such as jobs. People are not asking for gifts or transfers, they want work,” the economist said.

What are AFP’s proposed withdrawals?

The initiative that has aroused the most interest is that of the deputy of Podemos Peru, worthy streetto withdraw AFP funds 4 OFF, which is equivalent to 19,800 soles. The bill is still in the Commissariat for the economy The Congress is waiting to be approved and to have the green light to go to plenary.

“There are 4 days left before the end of the legislature, and the Congress You have the opportunity to help the economy of families by approving a new withdrawal from your AFP Fund. For this reason, I asked the Economics Committee to prioritize the opinion of my project,” Calle wrote on his official Twitter account on February 13.

If approved, the collection for the benefit of the affiliates It would take place in three armadas, as has happened before with other AFP withdrawals during the pandemic. The contributor’s account would receive two first deposits of 1 ITU and a final one of 2 ITU. The project charges the SBS Define the schedule, based on the last digit of the DNI, for the withdrawal request. According to the proposal, this withdrawal would benefit 3,449,950 contributors to the private pension system.

A second withdrawal bill was promoted by Peru’s Bicentennial Bench Congressman, Victor Cutipa. In this, it is proposed that the withdrawal be 3 ITUs, equivalent to 14,850 soles. Similarly to the first, it is proposed that the withdrawal be done in armies up to 1 ITU. The mechanism is maintained and the SBS would be in charge of defining the operational process for obtaining the funds. In this case, the project estimates a production of up to $22 million from the Individual capitalization accounts.

A third project presented proposes freeing up to 50% of pension funds to eliminate debts that affiliates have with banks, savings banks or formal financial institutions. For the moment, the measures have not yet been evaluated in congress, but the Ministry of Economy already warns that a new AFP retirement would be “the worst measure”,

In recent weeks there has also been talk of Law No. 31670, which creates the modality of minimum pensions and promotes alternative voluntary contributions for retirement purposes. It is not a project, but it has already been approved by the plenary of the Congress and the autograph was published on January 13 in the Official Journal El Peruano.

This regulation creates the minimum pension for the Private Pension Plan (SPP), which will allow each affiliate to set a retirement savings objective for the management of his Individual Capitalization Account (CIC) and to be able to withdraw the surplus at his disposal on retirement. age.

It should be noted that this regulation is optional and in no way deprives the member of the right to take advantage of the advantages existing in the Private Pension Plan (RPS) or other laws in force.