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Contributors may set a minimum pension for retirement in accordance with the law.

Under Law No. 31670, a contributor will be allowed to set a minimum amount for his retirement pension. | Font: Andean

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According to Law No. 31670, published in the Official Gazette of El Peruano, the depositor will be allowed to set a minimum amount of his pension when you retire.

The importance of the law will allow minimum pension set a goal pension savings to administer your individual capitalization account.
The application of the standard will be optional in accordance with the decision of the contributor. This “does not deprive him of the right to enjoy existing benefits in the Private Pension System”.

How will the minimum pension work?

According to the law, the contributor will be the one who determines the size of his minimum pension, which should not be less than the cost of the basic consumer basket, which includes food, clothing, housing and other essentials, approved by the National Institute of Statistics and Informatics (ERI).
This establishes a minimum pension balance, which is the amount that must be kept in the contributor’s individual capitalization account at the time of retirement.

The specified minimum pension balance is formed at the expense of mandatory contributions and individual payments made by contributors to their individual capitalization account.
The aforementioned law authorizes the Ministry of Economy and Finance to expand the range of contributors who can claim the reimbursement of paid income taxes of the fourth and fifth category or any other tax or balance belonging to an affiliate, to be paid into their individual capitalization account.

The executive branch must regulate this law within a period not exceeding 90 calendar days.

Source: RPP

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