HomeEconomyCongress Approves Recognition Bonus...

Congress Approves Recognition Bonus for Those Who Switch from ONP to AFP

Last year, it was estimated that about 115,000 participants would benefit from this measure.

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Congress approved by 113 votes in favor of the recognition bonus for members and former members in ON PAGE who switched to a private pension system.

The bonds to be issued by the government will be deposited into the individual account of each affiliate who switches to AFP, but for whom will this measure apply?

In accordance with the legislative initiative, in order to access this bonus, you must be affiliated with ON PAGE since January 2002 and made contributions for 48 months.

Prior to this date, there were three types of recognition bonds: the 1992 bond, the 1996 bond, and the 2001 bond. This means that only ONP savers who switched to AFP prior to 2021 could access this benefit.

The opinion indicates that Government It will have a maximum period of 12 months to begin issuing these recognition bonds to affiliates that have withdrawn from ONP since 2002.

At the moment, there is a maximum value set for these bonds, which is currently SGD 60 thousand, but it is indicated that this value will be updated according to inflation, i.e. the price index issued by INEI.

According to the working committee Congressthe standard is expected to benefit more than 115,000 branches at a cost of S$752 million.

It is worth noting that the autograph of the law must be sent to the executive branch, which will have the task of considering, observing or approving it and subsequently promulgating it.

Source: RPP

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