All contributors and former contributors who have moved since 2002 and from now on will migrate from the Pension Normalization Office (ONP) at Private Pension Fund Administrators (AFP), will not lose their contributions and will be deposited in their Individual Capitalization Accounts (CIC), according to a ruling by the Constitutional Court (TC), which last Wednesday declared unfounded the unconstitutionality lawsuit presented by the Executive Branch against the law that updated the recognition bonus.
Indeed, Law No. 31729, approved by insistence in April 2023 by the Congress of the Republic, established that ONP members who choose to join the AFP from 2002 onwards have the right to receive a recognition bonus. for their contributions.
They lost their money
Until that date, only workers who had migrated to the AFP until 2001 were entitled to the recognition bonus. Those who did so later lost their money.
The TC magistrates did not reach the five votes to declare the unconstitutionality of Law No. 31729, so the claim ended up being unfounded, according to ruling No. 292-2024.
Among the arguments of the Executive Branch to request unconstitutionality are that the payment of new recognition bonuses “does not respect the criterion of financial sustainability” and that there was also no budget to assume these payments.
Likewise, he argued that “the law promotes the transfer of members of the National Pension System (SNP) to the Private Pension System (SPP), which leads to the definancing of the SNP” and “does not constitute a comprehensive reform” of the pension regime.
The head of the ONP, Víctorhugo Montoya, on several occasions, when referring to the issue, indicated the law updating the recognition bonus would imply that 4.6 million members would stop contributing to the SNP.
The recognition bonus is an economic benefit offered by the Peruvian State to workers who contributed to the SNP before joining the SPP and which is paid at the time of retirement.
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