Sigrid Bazan: “AFPs are not necessarily good at managing their retirees’ money”

Labor Committee President Sigrid Bazan on Tuesday stressed the benefits of establishing Unified Integrated Pension System (UIS). In this sense, he clarified that the forecast aims to replace some AFPs and improve the model.

“AFP, which controls most of the funds, some even consider it more profitable, is not necessarily good at managing their retirees’ money,” he told the program. economy for all from RPP news.

Bazan explained that The unified integrated pension system will again vote in the labor commission after revision. In addition, he clarified that this person will manage affiliates that are currently in Private AFP or ONPContigo and Pension 65 pensioners.

“This is a forecast, it has not yet been voted (revision), which includes 13 bills from different instances, in which there were four working groups, in which pensioners’ associations, unions and civil society organizations, the AFP Association and the UNP participated,” the legislator specified .

The congresswoman assured that proper oversight would be in place to ensure the proper use of the public’s contributions, as it would involve multiple agencies.

“There will be several inspectors from the state’s own department. Sunat, Sunafil will deal with tax issues, the State Border Service will deal with financial issues. “, he explained.

What new features does the system bring?

This measure proposes a state-controlled pension system, which implies the closure of the Administrators of Private Pensions (AFP).

This SIUP is based on multicomponent system which will replace the ONP, AFP, Pensión 65, the Contigo program and the social pension system. To this end, the Department of Labor will be responsible for developing and approving the national social security policy, as well as planning and facilitating the functioning of the system.

Administration money It will be in charge of the National Autonomous Pension Manager, which will include a board of directors consisting of MTPE, the Ministry of Economy, representatives of the Central Reserve Bank, as well as representatives of the insured, pensioners and employers.

For ONP affiliates, if this measure is approved, they will necessarily move to SIUP with contribution recognition, and for AFP affiliates over 45 years of age, inclusion in the system will be voluntary.

It should be noted that along with the proposal Universal basic pension old age and the universal basic disability pension.

If the measure is approved, under this system, people who turn 65 will receive a basic pension that will be no less than the value of the individual basic basket, provided they prove at least 15 years of contributions.