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October 5, 2022
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TC declared constitutional the withdrawal of pension funds from the AFPs

TC declared constitutional the withdrawal of pension funds from the AFPs

The (TC) declared unfounded the claim of unconstitutionality filed by the Lima Sur against the law that empowers members of the Private Pension Fund Administration System (AFP) to withdraw their funds.

As indicated by the TC, the lawsuit was filed against articles 1 and 3 of Law No. 31192, which allowed the sixth withdrawal of up to 4 UITs from the AFPs (S/ 18,400).

The Collegiate highlighted the existence of a context of exceptionality that preceded the issuance of the aforementioned law and that said exceptionality determined that the measures provided in the law subject to control were temporary and of limited scope.

In the judgment (Exp. No. 00020-2021-PI/TC) it is stated that such an exceptional situation justifies the authorities to take swift, timely and appropriate measures to alleviate the economic situation of households and businesses, in defense of their rights. and economic freedoms and, in general, in protection of the country’s economy, within the framework of possibilities established by the Constitution and the laws”, indicates the TC statement.

SPP funds are intangible

The TC understands that the legal nature of the Private Pension System (SPP) does not correspond to social security. Consequently, the measure provided for in article 1 of the contested law does not affect the constitutional content of the intangibility of social security funds, so that it is constitutionally lawful for contributors to allocate their funds to an application other than those that justified its creation.

Notwithstanding the foregoing, it maintained that the SPP funds are intangible in the face of arbitrary interventions by the State, since they constitute the assets of the affiliates protected by the guarantee of inviolability of the right to property, enshrined in article 70 of the supreme law and in the guarantee savings declared in article 87 of the Constitution.

Likewise, the Collegiate exhorted the Congress and the Executive Power so that in the face of the crisis of the Private Pension System, they articulate efforts, legislate in a reasonable time, a comprehensive reform of the pension system, public and private, with the purpose of constituting a authentic social security system, that meets the goals of the social and democratic state of law.

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