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How much will it cost the state to transfer branches from DNP to AFP?

The government could spend more than 48 billion soles in exchange for ONP contributors to AFP. | Fountain: Andean

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Thanks to the recognition bonus Congress suggests that the participants National Welfare Administration (ONP) are changed to the Pension Fund Manager (AFP) without losing their contributions.

The first step towards the creation of this law was taken last December, when Congress approved autograph; However, now that it is in the hands of the executive, the proposal has been discontinued.

Why is the management not supporting the project?

According to the President Dina Boluartethe approval of this measure will result in a high financial cost of more than 48 billion soles.

The migration of 1.96 million people alone would cost approximately S$29,576; however, it is still necessary to include the budgetary costs that this will entail in the future.

High financial costs

The government also pointed out that the autograph convention did not take into account the current situation in the National Pension System, which needs money from public domain to cover the payment of pensions for all its pensioners.

ON PAGE This is a financially deficient regime, only in 2021, the contributions of branches covered 63% of the total amount of pensions paid, the state had to do the rest.

“The recognition bond proposed in the autograph, relating to the transfer of contributions from the SNP to the SPP after 30 years of its inception, will contribute to the collapse of the former due to the exhaustion of savers to fund payments to current retirees,” the observation notes.

According to a report from Ministry of Economy and FinanceIn 2021, the government allocated 2,045 million, in 2020 – about 2,635 million for the observance of pensions.

With intention Congress additional financial burden may arise.

Source: RPP

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