Are more AFP withdrawals coming? These are the new projects that seek to release more money from the pension fund

Are more AFP disbursements coming? With the aim of alleviating the family economy, affected by the pandemic that began in 2020 and the economic crisis, a group of legislative projects have been presented that propose the withdrawal of contributions from the Pension Fund Administratorss (AFP). What are they about?

MORE INFORMATION: How to use 25% of your AFP fund for a home down payment

The Economy Commission is in charge of evaluating all the proposals to determine which is the most appropriate and its eventual approval. There are some that propose differentiated withdrawals, others up to S/18,400 (equivalent to 4 UIT) and some up to 100%.

The head of the aforementioned working group, Silvia Monteza, reported that there are eight bills in which they request refunds of AFP funds. “After the support, a single opinion will be made seeing what is best for the population”, Explain. What are the aforementioned projects?

WHAT ARE THE PROPOSALS FOR THE NEW WITHDRAWAL OF FUNDS FROM THE AFP?

Below, we mention some proposals for the withdrawal of funds from the AFPs:

One of the proposals is that of Congresswoman Digna Calle, from Podemos Peru (PP). This consists of authorizing, in an extraordinary manner, the optional withdrawal of your funds accumulated in your Individual Capitalization Account (CIC) up to an amount of 4 ITU (S/18,400) in three parts and within a period of 90 calendar days. The measure, he assures, would benefit more than 7 million affiliates (contributors and former contributors).

The first disbursement of 4,600 soles (1 UIT) would be within a maximum period of 30 calendar days, computed from the presentation of the request. A second disbursement for the same amount within a maximum period of 30 calendar days, computed from the first disbursement and the third disbursement for 9,200 soles (2 UIT) within a maximum period of 30 calendar days, computed from the second disbursement.

Differentiated

Congressman José Luna (PP) also proposed that the withdrawal be up to 4 UIT (S/18,400) for affiliates who have not contributed at least three months prior to the publication of the rule and two 2 ITU (S/9,200) for those who are currently working or maintain intermittent work and contribute regularly to the system.

According to the parliamentarian, the proposal could benefit the 8 million 212,743 affiliates who are in the Private Pension Fund Administration System to date.

The Free Peru caucus proposed Bill No. 00929/2021-CR, which raises the 100% withdrawal AFP savings. All the requested funds would be delivered within a period of 30 calendar days.

Person counting bills of 100 soles (Photo: Andina)

HOW MANY HAVE BEEN THE EXTRAORDINARY WITHDRAWALS OF THE AFP APPROVED IN THE PANDEMIC?

The Peruvian State approved five withdrawals of AFP funds since the start of the pandemic. These are:

The Emergency Decree 034-2020, of April 1, 2020, established the one-time extraordinary withdrawal of up to 2,000 soles from their Individual Capitalization Account (CIC), provided that, until March 31, 2020, they did not have accreditation of mandatory pension contributions to said account, for at least six consecutive months. The delivery was made in April.
Law 31017, of April 6, 2020, authorized, on a voluntary and extraordinary basis, to withdraw up to 25% of the total funds accumulated in your Individual Capitalization Account, establishing the maximum withdrawal amount as the equivalent of 3 UIT and as minimum withdrawal amount equivalent to 1 UIT.
Emergency Decree 038-2020, of April 13, 2020, included a new extraordinary withdrawal from the AFPs for those who had entered Perfect Labor Suspension (SLP), excluding the universe of people included in DU 034-2020. It facilitated the withdrawal of up to S/2,000 from the Individual Capitalization Account (CIC).
Law 31068, of November 4, 2020, which authorized the extraordinary withdrawal of SPP affiliates who until October 31, 2020 did not have proof of pension contributions to the Individual Capitalization Account for at least twelve consecutive months, could optionally withdraw up to 4 UIT of the total of your accumulated funds. The rule was not applicable to those who qualified to access the Early Retirement Scheme for Unemployment.
Law 31192, of May 6, 2021, extraordinarily authorized all members of the Private Pension Fund Administration System to optionally withdraw up to 4 UIT of the total funds accumulated in their Individual Capitalization Account. It was not applicable to those who qualify to access the Early Retirement Scheme for Unemployment.