Withdrawal of AFP-2024 | When Congress Debates, Beneficiaries and More Activities | economy

The Congressional Economic Commission, led by legislator César Revilla (Fuerza Popular), will hold a debate on the projection of the law on the modernization of the Peruvian pension system on Monday, March 25, at 11 a.m., proposing a reform. A supplementary provision of the pension system includes a New withdrawal of AFP funds Hasta 4 off (v/20,600).

Although this discussion was supposed to take place on March 13, during a decentralized session in Sanchamayo, it did not materialize. Due to problems of lack of electricity and internet connectivity.

More information | AFP 2024: How do I know how much money is in my pension fund?

In conversation with trade, Congressman Cesar Revilla Although the objective of the program is to provide economic assistance to Peruvians who have AFP funds and need immediate income, this initiative It also targets informal PEA.

“We are going to take appropriate precautions so that nothing disturbs us “Let's discuss this proposal for all Peruvians, not just the 25% with AFP.” The legislator noted.

The door (AFP's rest) is not closed. During this time the Commission has, above all, improved our financial flow. And our country will endure the withdrawal of the AFP. But this must go hand in hand with reform. “Today's withdrawal is only a relief” I notice.

César Revilla, president of the Congressional Economic Commission, confirmed that the debate on the new retirement of the AFP (seventh since 2020) will take place on March 25 | Photo: César Bueno / El Comercio (archive)

Since April 2020 – in the midst of the Covid-19 pandemic – to date, six AFP withdrawals have been approved in Parliament and more than 20 initiatives (28 in total) have been tabled for that purpose. For this reason, the proposal for the seventh withdrawal from the pension fund will be included in the discussion on March 25.

Review | AFP 2024: How do you know how much you have put into your pension fund?

MEF against withdrawal of new AFP

He Ministry of Economy and Finance (MEF), by Directorate General of Financial Markets and Private PensionsSent a report to the Legislature opposing the new withdrawal of pension contributions.

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The document sets out why the MEF considers that withdrawal of fresh funds from AFPs will not benefit the national economy or subsidiaries.

Official Letter No. dated 11th March. 483-2024-EF-10.01, the Minister of Economy and Finance, Jose Arista, Sent to Chairman of Parliament's Economic Committee. Cesar Revilla, Report no. 0042-2024-EF/65.03 discussed the Department's technical opinion on this topic.

This was after the said legislator requested the MEF Bill no. Your opinion on 6566, It entitles members of private pension funds to extraordinary withdrawals of up to 4 UIT (S/20,600).

See here AFP 2024 Withdrawal: Know all the details of the debate to withdraw the 4 ITUs

“In this respect, the provisions of the regulatory proposal indicate that the composition of the investment portfolios managed by the AFPs is more liquid with the aim of foreseeing the possibility of withdrawing the balance available in the CIC of the subsidiaries of the private pension system. It forces managers to invest in investment securities with short-term horizons that do not match the objectives of the long-term pension portfolio, resulting in: insufficient competition, poor diversification of portfolios and the potential risk of obtaining a portfolio that is not optimal as a result, which directly affects the amount accumulated to provide pensions to members.The MEF report says.

It also refers to the measure proposed in Bill 6566 has a negative effect on the subsidiary, “It reduces their future pension when they reach retirement age, which affects one of the objectives of social security, which is to ensure that the member pays periodic pensions based on their accumulated amount for their stage of old age” .

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Letter from Secretary Jose Arista to the Chairman of the Congressional Economic Commission

Letter from Secretary Jose Arista to the Chairman of the Congressional Economic Commission

MEF's reasons for expressing its opinion against withdrawal of AFP

These are the four foundations on which the MEF bases its unfavorable opinion on the fresh withdrawal of private funds from AFPs. We present them to you below:

PL 6566 Violates the provisions of Articles 10, 11 and 12 of the Political Constitution of Peru and represents non-compliance with international agreements. On human rights recognized by Peru.

Withdrawal of funds from the SPP will mean that the mix of investment portfolios managed by the AFPs is more liquid to predict the potential withdrawal of the balances held by the subsidiaries in the CIC. Increased financial costs for the Peruvian state create greater losses in profits for subsidiaries. Public Debt.”

Application of the provisions of PL 6566 will result in approximately 6 million SPP members withdrawing funds from their CIC, This would represent a potential resource outflow of about S/29.5 billion.” Supporting 6 million members.

“Regarding OECD Recommendations, Bill No. 6566/2023-CR It does not include what is said by that body, so it may be negative for the country. in its accession process to the OECD.

Learn more How much is 1 UIT worth? You will need to know this if the AFP is eventually withdrawn

How do I know how much money is in my AFP?

Each AFP at the national level has a total register of all contributions, which can be viewed on the organizations website or app. AFP Integral, Prime, Habitat or ProFutura.

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