He Banking, Safe and AFP (SBS) SuperintendentSergio Espinosa, argued that the right to the minimum guaranteed pension for all Peruvians, established in the pension reform regulations, is a significant advance for Peru’s pensioners and that a Eighth Retreat Funds would leave workers without this benefit.
“The Minister of Economy (Raúl Pérez-Reyes) was very clear in saying that if an eighth withdrawal is approved, the minimum pension mechanism that has been established in this new law will be affected and that it is a significant advance for Peru’s pensioners,” he explained in an interview with RPP.
In addition, Espinosa said that now the important thing is to let the pension reform work, which entered into force on the last Saturday after the publication of its regulations, instead of thinking about more fundamental withdrawals, as some banks are looking for in the Congress of the Republic.
According to the new Pension System Law, to access the Minimum Pension of S/600 per month, guaranteed by the State, workers must have 240 contribution units (UDA), regardless of the amount of money that they have accumulated in their individual capitalization account (CIC).
On this point, the Minister of Economy and Finance, Raúl Pérez-Reyes, recently said that in the Private Pension System (SPP) there are 6.3 million affiliates with a balance less than S/5,500 (due to the 7 previous retreats) and that they can benefit because if they no longer do more withdrawals, the State will complete the amount they lack to receive the S/600 per month when they retire.
More competition
“As stated in the Economy Commission a few months ago, it is necessary to let the reform work. Now, published the regulation, it touches the SBS approve some sector regulations to put into operation several of the benefits that the reform has,” he noted.
Regarding how the Law of Modernization of the Peruvian pension system (No. 32123) will be implemented so that the benefits reach all citizens, the Superintendent said that the regulatory entity is working to regulate the participation of banks, insurers, boxes, cooperatives, etc., in the administration of pension funds and there is greater competition in the sector.
“The first thing we are working on and that we are going to get soon is the regulation that allows other entities of the financial or insurance sector to compete for the administration of private pension funds,” he concluded.
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