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MEF: Recognition of the pledge would mean the end of the ONP

MEF warns that if it is approved at the plenary meeting, this means that the government will allocate 4 billion 700 million soles. | Fountain: Andean

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Statement Recognition Bonus will put an end to the National Pension System, according to the Ministry of Economy and Finance (MEF).

In a note, the IEF indicated that with this measure approved in Congress the death certificate of the National Pension System will be issued, which, in turn, will increase the concentration in the market for pension savings.

“Pension reform should ensure the future of branches and pensioners. The Recognition Bonds Act will put an end to the national pension system a few months after the reform that will be implemented,” added Economy Minister Alex Contreras.

According to the MEF, this recognition bonus could result in all ONP contributors being moved into the private pension system, which would mean the pensioner’s payroll would have to be funded entirely by the public treasury.

It is currently assumed that wages pensions That’s over S/5 billion a year with 406,000 branches over 65 years old.

Transferring ONP affiliates to AFP could cost S$4.7bn in the first year of the proposal alone, so “what is already being paid annually in pensions, added to these additional costs, totals S$11bn.”

They add that if the measure is approved, it does not guarantee that affiliates will change their pension system have money in their individual AFP account immediately as the recognition bonus is a future payment promise that materializes when partners reach the age of 65.

At the moment, the measure has not yet been discussed at the plenary session of the Congress, since only a few weeks ago the Economic Commission, at the insistence, approved the conclusion.

Source: RPP

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