Members of the Private Pension System (SPP) have a percentage of their salary withheld each month in order to collect for their retirement fund, but what happens if the employer deposits that money to a AFP which is not that of the contributor. Can the money be recovered?
In these cases, a procedure must be followed, which we will tell you about below. You should know that the Pension Fund Administrators (AFP) are private institutions whose sole purpose is the administration of pension funds under the modality of personal accounts. After several years of contributions, they grant retirement pensions.
Your retirement fund will depend on the amount of your contributions, so you must be careful that the deposits are made properly.
HOW MUCH DO I GET DISCOUNTED EACH MONTH BY THE AFP?
As a member of the private pension system (SPP), your employer must retain and pay your contributions to the AFP in which you are affiliated, which will be deposited in your Individual Capitalization Account (CIC). If there is no continuity in the payment of your contributions, you may lose the disability and survival insurance coverage.
- The retention percentage is made up of 10% of your remuneration. This is in addition to the insurance premium and the commission charged by the AFP.
- The employer must withhold and make the deposit to the AFP within the first five (5) business days of the following month (normal payment term).
WHAT HAPPENS IF MY EMPLOYER MADE A MISTAKE AND DEPOSITED MY CONTRIBUTIONS TO AN AFP WHERE I AM NOT A MEMBER?
This can happen, but in that case, the AFPs will detect if there are contributions collected from workers who are not their members. What will happen?
- The AFPs will send to the Superintendency of Banking, Insurance and AFPs (SBS) a detailed list of these workers and their contributions so that the AFP where they are affiliated can be identified.
- Once said process is concluded, the SBS will notify each AFP of the amounts that must be transferred for the correct collection.
HOW DO I KNOW WHICH AFP I AM AFFILIATED WITH?
You can check what AFP you belong from the platform of the Superintendency of Banking, Insurance and AFPs (SBS)via this link.
You only have to enter your DNI number and you will be able to see in which Pension Fund Administrators you are.
