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Administrators Association pension funds proposed a reform of the pension system in the country. Recall that there are two of them in Peru: private and public.
Giovanna Priale, President AFP Association He explained to RPP Noticias’ Economy for All program that the proposal aims to ensure that Peruvians have a guaranteed pension even if they have contributed less than 20 years: “It will enable all Peruvians to be included.”
Currently in Perupension funds are in public administration National Welfare Administration and administrators of pension funds, which are private.
In the case of the ONP, the money goes into a general fund, and through it the Peruvian receives a pension only if he has contributed for at least 20 years. “It is known that only 2 out of 10 employees receive a pension under this system, and in the private system such a concept does not exist,” the spokeswoman explained.
To do this, they offer the creation of individual accounts; in addition to including initial capital for each newborn.
Who should manage these funds?
According to the proposal, both systems (AFP and SNP) should coexist in the same system, but relying on individual capitalization accounts for formal workers and the self-employed is to promote “corresponding contribution”
Other suggestions for this reform:
-Minimum pension for everyone. implement a schema pension a minimum that recognizes and rewards individual efforts through solidarity mechanisms.
– Equal contribution. It is proposed that for each salt contributed by the affiliate, the State should contribute an equivalent amount until the minimum pension is reached. This contribution is aimed at attracting informal and independent workers who do not have a permanent ability to save.
-Return 1% of IGV. It is proposed to return to each citizen 1% IGV paid during the year, thereby increasing pensions and profitability, promoting accumulation and formalization.
– initial capital. This means that the state creates a fund for every Peruvian born as an underlying fund, which is capitalized until the person reaches the age of 65.
-Increase the number of fund managers. Partners will have more choice, opening up the pension system to new players with the same rules: separate assets and intangible funds so that savings are protected.
-Commission for performance. With a profitability component to create a new alternative for affiliates.
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.