If a person dies, is their money lost from the AFPWhere does your fund go? Who are the beneficiaries or heirs? These are some questions asked by members of the Private Pension System (SPP) or their relatives in case the contributor has died. Here we explain.
One of the myths is that if a member dies, the AFP keeps their money, but this is not the case. In this regard, the AFP Association explained that in the SPP the savings of the contributors are in individual capitalization accounts, with name and surname, so that when their direct beneficiaries perish they can count on a survival pension, and, in the event of not having them, the fund is a matter of inheritance. How do you know which of the two one can qualify for and what is needed? These questions will be answered in this note.
WHO CAN BE THE BENEFICIARIES OF AN AFP SURVIVAL PENSION?
The AFP Association mentioned that in the Private Pension System (SPP) there is a survival pension. As of November 2021, 78,704 survivor pensioners are registered, whose relatives died while being active affiliates. This occurs in the following cases:
The spouse or partner:
They must be legally recognized.
Those under 18 years of age and over 18 years of age in a situation of disability (declared totally and permanently incapable of working by the medical committees of the SPP). In the case of children over 18 years of age, they will receive a pension if they follow basic or higher education, uninterruptedly and satisfactorily, up to 28 years of age.
Parents who are economically dependent on the member (father over 60 years of age and mother over 55 years of age) and parents of the member who are in a situation of disability (declared disabled of any degree or nature by the SPP medical committees, regardless of their age ).
HOW MUCH IS A SURVIVAL PENSION ON AVERAGE?
According to the information provided by the AFP Association, as of November 2021, there are 78,704 survivor pensioners whose relatives died while being active members (they were contributing to their pension fund). 84% of them have insurance coverage (66,155 pensioners).
As of November 2021, the average amount of the survival pension amounts to S/799.88. And the average pension for those who have insurance coverage is S/869.66.
HOW ARE THE PROCEDURES OF AN AFP SURVIVAL PENSION PERFORMED?
To start with the procedures, the relatives must present to the AFP:
- Death certificate.
- Medical certificate of death or autopsy certificate or certificate of declaration of presumed death.
- Documents that prove the remuneration of the last 48 months of the affiliate, only required in the case of those remunerations that had been generated prior to joining the SPP.
- Police report in case of accidental death.
- Documents proving beneficiary status, as the case may be.
The survival pension of the beneficiaries is generated considering the following:
- If they do not have insurance coverage, their pensions will be calculated based on the total amount that the affiliate has in his fund.
- If they have insurance coverage and the affiliate’s fund does not cover their pensions, an insurance company makes up the difference.
- If the member’s fund exceeds the amount necessary to cover the pensions, the surplus is delivered as an inheritance.
WHO CAN ACCESS THE INHERITANCE OF AN AFP FUND AND HOW?
If there are no beneficiaries, the heirs considered in the declaration of heirs, intestate succession or will registered in Public Registries, may request the return of the fund as an inheritance.
- When accessing the fund as an inheritance, the heirs access the entire accumulated balance in the affiliate’s fund and in a single installment.
- If the member died before retiring, the AFP makes the payment within a period of 90 calendar days after submitting the request.
- If the member died while retired, the term is 15 business days after the application is submitted.