Former ministers and economists send letter to the Executive and Congress against withdrawal of 4 UIT from AFP

Former ministers and economists send letter to the Executive and Congress against withdrawal of 4 UIT from AFP

Various former Ministers of State and economists sent an open letter to the Executive Power and Congress of the Republic against the ), equivalent to S/ 18,400.

As it is recalled, on April 12, the Parliament’s Economy Commission approved – with nine votes in favor, one against and two abstentions – the ruling that authorizes AFP members to withdraw their funds. Now the project will go to plenary.

In the document, the signatories described “irresponsible” the measure and warned that if approved in plenary session, it would “substantially reduce” future pensions and “put in suspense” the country’s macroeconomic stability.

He recalled that in the context of the pandemic of the COVID-19five extraordinary withdrawals from the AFPs amounting to S/ 65,923 millionwhich has left 2.3 million affiliates with zero soles in their accounts.

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“If the recent withdrawal proposal is finally approved in the plenary session of Congress, the amount that will come out of the SPP (Private Pension System) in just over two years will end up amounting to more than S/ 97 billion, which will represent 11% of GDP. An excessive amount from every point of view, which reveals the irresponsibility of this bad public policy”he detailed.

Likewise, they refer that the proposal of the Economy Commission “takes a dangerous step that continues to lead us towards the destruction of Peruvian pensions and macroeconomic stability”.

“Finally, the main risk rating agencies have been warning of the imminent danger to the viability of the Peruvian economy and families if this latest retirement project prospers”they underlined.

Likewise, they indicated that measures such as the one ruled by the Economy Commission have no other motivation than “succumbing to today’s political gains at the cost of subjecting the country to high costs in the short and long term”and progress in reforming the private pension system continues to be postponed.

“We urge the authorities of Parliament to pass laws with a vision of the future that benefit society as a whole, and the Executive, which must implement them, to act responsibly and not succumb to demagogic temptations, which will cause great harm to all Peruvians”they sentenced.

Among the signatories are former ministers such as María Antonieta Alva, Mercedes Araoz, Carlos Bruce, Paola Bustamante, Luis Carranza, Jorge González Izquierdo, Gloria Montenegro, Magali Silva, David Tuesta, Alfredo Thorne, Luis Valdivieso, Milton Von Hesse, Verónica Zavala, among others. .

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