Retirement of AFP: what would the sixth installment of the pension fund be like

Updated on 04/14/2022 08:20 pm

How would the new withdrawal of funds from AFP? The Commission of Economy, Banking, Finance and Financial Intelligence of Congress gave the green light to the opinion that allows AFP affiliates to withdraw up to S / 18,400 from their pension fund. Do you know how it would be done?

MORE INFORMATION: What do the experts think about a sixth withdrawal of the AFP?

The proposal of the legislative working group was approved on Tuesday, April 12, with 9 votes in favor, one against and two abstentions. The document derives from seven bills that propose the withdrawal of funds to promote economic reactivation, although, on the other hand, they warn that the measure is counterproductive.

If the rule is approved in the plenary session of Congress, it will be the sixth withdrawal of AFP funds, since the first approved in 2020, as a mechanism to alleviate the coronavirus pandemic.

WHAT DID THE ECONOMY COMMISSION APPROVED REGARDING THE WITHDRAWAL OF FUNDS FROM THE AFP?

The Commission of Economy, Banking, Finance and Financial Intelligence of Congress approved on April 12 the opinion that authorizes AFP affiliates to withdraw up to 4 tax units (UIT) from their pension fund, which is equivalent to S / 18,400 .

Person withdrawing money from an ATM (Photo: Andina)

WHAT WOULD THE NEW AFP FUNDS RETRO LOOK LIKE?

The legislative opinion contemplates that the contributor can withdraw up to S/18,400, equivalent to four UIT. According to the text, the return would be made every 30 days, from the day after the enactment of the law:

First part: A UIT 30 days after the request begins.
Second part: A UIT 30 days after the delivery of the first amount.
Third part: One ITU 30 days after the second delivery.
Fourth part: One UIT 30 days after the third disbursement.

People circulating outside the headquarters of AFP Integra (Photo: Andina)

CAN THE MONEY FROM THE EVENTUAL SIXTH WITHDRAWAL FROM THE AFP BE SEIZED?

The norm indicates that these withdrawals are intangible, and cannot be subject to a discount, embargo or judicial withholding.

HOW MUCH MONEY HAS ALREADY BEEN WITHDRAWN FROM AFP FUNDS?

The deputy superintendent of the AFP of the SBS, Elio Sánchez, pointed out that the contributors to the Private Pension System withdrew almost S / 66,000 million, with the five regulations issued to face the impact of the covid-19 pandemic. He stated that 45% of the amount withdrawn has been made by people who were working.