The AFP Association (AAFP) before the Work Commission of the Congress of the Republic presented a proposal to reform the pension system that guarantees a minimum pension for all Peruvians, with individual capitalization accounts in the name of each affiliate, VAT refund and seed capital.
“We propose to include independent and informal workers and improve pensions, with innovative ideas, since currently only 3 out of 10 workers will have access to a pension. Our proposal universalizes the pension”, said the president of the Guild, Giovanna Prialé.
Before the congressional working group chaired by the legislator of Juntos por el Perú, Sigrid Bazán, the president of the union pointed out that this approach seeks to guarantee a minimum monthly pensionhe to people with at least 20 years of contributions and a graduated pension for those who have contributed between 10 and 20 years.
In addition, the initiative incorporates seed capital, which implies a contribution from the State to each newborn, thus financing Pension 65 for all Peruvians and giving a more efficient use of state resources.
“The important thing is to keep in mind that the saving for retirement is long term. For this reason, we must think about a true reform, including Peruvians who will not have anything to live on when they reach old age,” Prialé indicated.
The AAFP initiative is based on the following points:
Minimum pension for all. Implement a minimum pension scheme that recognizes and rewards individual effort through solidarity mechanisms.
Matching contribution. It proposes that, for each sol contributed by the affiliate, the State contributes an equivalent amount until reaching a minimum pension. This contribution aims to incorporate informal and independent workers who do not have constant savings capacity.
Refund of 1% of the IGV. It proposes that each citizen be returned 1% of the VAT paid in the year, thus increasing pensions and profitability, promoting savings and encouraging formalization.
Seed capital. It implies that the State establishes a fund for each Peruvian born, as a base fund that is capitalized until the person reaches 65 years of age.
Increase the number of fund managers. Affiliates will have more options to choose, opening the pension system to new players with the same rules: separate assets and intangible funds so that savings are protected.
Creation of a commission for performance. With a component associated with profitability to create a new alternative for affiliates.
“With this proposal we want to contribute to the broad and technical debate, in order to work for a comprehensive reform that grants adequate pensions to all Peruvians,” remarked the guild president.
