The Executive Branch published the law that empowers workers to make extraordinary withdrawal of pension funds from their Pension Fund Administrator (AFP) for up to 4 ITU (S/18,400) in the context of the COVID-19 pandemic.
The Law 31478published today, Saturday, May 21 in the Official Gazette of Diario El Peruano, indicates that in order to complete the withdrawal, affiliates must submit a request in person or virtually within 90 calendar days after the publication of the law.
It also provides that the Superintendence of Banking and Insurance (SBS) must regulate the rule in the next 15 days.
It is reiterated in the rule that these funds are intangible, so they cannot be subject to discounts, seizure, withholding or judicial or administrative affectation. They can only be withheld due to food debts.
How will the money be disbursed?
- Members submit their request remotely, virtually or in person, and only once, within 90 calendar days after the regulations of this law come into effect.
- The disbursement will be made in three parts and every 30 days.
- If the affiliate no longer wants the withdrawals to be made, he or she must notify his or her AFP at least ten days before the scheduled disbursement is made.
On Friday night, the promulgation of this autograph as law was carried out in a ceremony at the Government Palace, which was headed by the president peter castle.
“After an exhaustive analysis of our team, the Government has decided to sign the autograph of the law that authorizes the extraordinary withdrawal that authorizes the extraordinary withdrawal of private pension funds, AFP, of up to S / 18 thousand soles for its promulgation. We hope that within a maximum period of 15 days, workers can submit their applications to withdraw contributions from their savings,” said the head of state.
He mentioned that there are many voices that do not agree with the withdrawal of funds from the AFP pointing out that they can affect the retirement of those affiliated to this system. However, the president asked “not to be afraid” because his government and the teams from the different sectors will work hard to boost employment levels in the country.
President Castillo announced that a technical commission will soon be formed to work on the reform of the national pension system.