Who is included in the sixth withdrawal of the AFP? The plenary session of Congress approved by an overwhelming majority the opinion of the Commission of Economy, Banking, Finance and Financial Intelligence of Congress that allows a new withdrawal of funds from the Private Pension System (SPP). Do you know what is missing for it to become law and how the deposit would be made?
MORE INFORMATION: Congress approves a new withdrawal of up to S/ 18,400 for all AFP members
The Plenary of Congress approved -on the night of May 4, 2022- the bill by 107 votes in favor, 8 against and 2 abstentions. The document had been approved on April 12 by the aforementioned working group and is intended to alleviate the economic crisis derived from the coronavirus pandemic, to which has been added the rise in prices of fuels and basic necessities. because of the war between Russia and Ukraine.
Now the procedure must follow its regular course and, if the rule is approved, it will be the sixth withdrawal of funds from the AFPs. The first withdrawal was approved in 2020 to an opinion that allows a new withdrawal for members of the Private Pension System (SPP). Do you know how much money can be disposed of in the sixth withdrawal of the AFP?
WHO WILL BE ABLE TO WITHDRAW PART OF THEIR FUNDS IN THE SIXTH AFP RETREAT?
In accordance with the opinion of the Economy Commission, backed by the Plenary Session of Congress, all AFP affiliates who are not of retirement age will be able to withdraw funds.
The measure also excludes those who withdrew up to 95.5% of their Individual Capitalization Account (CIC) and affiliates covered by the Special Early Retirement Scheme (Reja).
HOW MUCH MONEY CAN BE WITHDRAWN IN THE SIXTH WITHDRAWAL OF FUNDS FROM THE AFP?
The bill authorizes AFP affiliates to withdraw up to 4 tax units (UIT) from their pension fund, which is equivalent to S/18,400. If the measure is approved, the disbursement would be made in three parts and every 30 days.
HOW COULD THE SIXTH WITHDRAWAL OF AFP FUNDS BE MADE?
Once it becomes law, the Superintendence of Banking, Insurance and AFPs (SBS) has 15 days to establish the technical procedure for the sixth withdrawal. The opinion proposes that the disbursement be in three parts. A) Yes:
- First part: One UIT (S/4,600) 30 days after the request is approved.
- Second part: One UIT (S/4,600) 30 days after delivery of the first amount.
- Third part: Two UIT (S/9,200) 30 days after the second delivery.
WHAT IS MISSING FOR THE SIXTH WITHDRAWAL OF FUNDS FROM THE AFP TO BE APPROVED?
In order to access a new withdrawal of funds, the following must be met:
- Once approved, the autograph of the approved law must be sent to the President of the Republic for promulgation within a period of 15 working days. If he has no observations, the President of the Republic promulgates the law, ordering its publication in the Official Gazette El Peruano.
- If the Executive presents any observations on the proposal approved by Congress, it has 15 days to submit them to the Legislative.
- If the term of 15 days has elapsed, the President of the Republic does not promulgate the bill sent, it is promulgated by the presidency of Congress.
WHEN WILL THE SIXTH WITHDRAWAL OF FUNDS FROM THE AFP BECOME LAW?
The sixth withdrawal of contributions to the AFPs would become a law from the day after its publication in the Official Gazette A Peruvian manexcept for a different provision of the same law that establishes a longer period of legal vacancy in whole or in part.
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.
- S/ 2,966 million with Emergency Decree 34-2020.
- S/ 19,647 million under Law 31017.
- S/ 2,094 million with Emergency Decree 38-2020.
- S/ 9,016 million thanks to Law 31068.
- S/ 32,200 million with Law 31192.
WHAT PROPOSED THE OPINION OF THE LABOR COMMISSION?
The Congressional Labor Commission approved a new opinion on May 3 that sought the withdrawal of up to S / 18,400 from the AFP pension funds, but with certain modifications that make it different from the project approved by the Economy Commission. This opinion proposed that only those affiliates who do not have three consecutive months of contributions to the system could withdraw the money.
