The Modernization Law of the Pension System has generated controversy among those who supported her, as well as contradictions within her own Executive. This, although experts consider that changes have been positive.
The reform establishes that, as of June 2027, all citizens must join the National Pension System (ONP) or the Private Pension System (AFP).
If they do not choose, they will be automatically assigned. In addition, since 2028, those who issue receipts for fees must contribute gradually: starting with 2% and reaching 5% in 2034. A minimum S/600 pension is also established for those who accumulate at least 240 contribution units (equivalent to 20 years of contributions).
On the other hand, affiliates under 40 may no longer withdraw 95.5% of their funds when they retire. They can only opt for life or scheduled pension. Finally, the AFPs will charge depending on the performance of the funds, with a fixed part and another variable. This seeks to align your incentives with investment results.
President Dina Boluarte publicly announced her support to the bill that would allow an eighth withdrawal of funds from AFPs, arguing that “the money that is discounted and goes to AFP or the ONP is the money of the family that works” and that families must decide when to use it.
The Minister of Economy, Raúl Pérez Reyes, had ruled just days before against this measure. He pointed out that previous retreats “have not been convenient” and warned that allowing more withdrawals “would put the minimum pension of S/600” at risk, in addition to having a negative fiscal and macroeconomic impact.
Banks turned
According to pictures issued by the journalist Martín Hidalgo, at least three banks who voted in favor of the law in Congress, have issued communications in which they question the reform and even ask for their modification. One of these is popular renewal.
Rafael López Aliaga’s party announced that he will present a legislative initiative that allows the contributors to “freely decide the use of their pension funds.” However, when it was the first vote of this law in Congress, three RP congressmen voted in favor, none against or abstention. In the second vote, four parliamentarian of that group voted in abstention and none against, or in favor.
Alliance for Progress also issued a statement in which he rejected the law of modernization of the pension system and assured that they will present the initiative to repeal it. However, the group of César Acuña voted in favor of the norm in Congress. In the first vote, 8 votes were obtained in favor, while 7 in the second. In neither they voted against or abstention.
Popular Force published a statement on Monday in which he accused the Executive Power of having “denatured” the pension law. Given this, he announced that he will propose changes in the norm. However, when the law was voted, 21 Fujimorists voted in favor in the first vote, while 19 in the second. In none there were votes against or in abstention of the orange bench.
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