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Recognition Bonus: ONP and MEF Evaluate Constitutional Court Lawsuit

A claim against a bond recognition law must be approved by the Council of Ministers. | Fountain: Andean

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Last week, Congress urged to pass legislation establishing the Recognition Bonus for Contributors and Former Contributors National pension system transfer to the AFP, despite opposition from the executive branch.

Now the Office of Pension Standardization (ONP) has indicated that it is analyzing with the Ministry of Economy and Finance (MEF) the possibility of filing a lawsuit with the Constitutional Court (CC).

This lawsuit that will seek to declare unconstitutionality standard, to avoid its application, it still needs to be approved by the Council of Ministers.

For now, ONP head Victorugo Montoya has indicated that a study is being carried out to see the feasibility of the proposal.

“We have an obligation to do this, like any other public sector entity, to comply with the norm,” he said.

Montoya clarified that the implementation of this law this would cost at least S$5,800 million in the first year of application, putting more pressure on the budget treasury.

“But the total cost of implementing this Law in the form in which it was approved will be 40 billion soles,” he told Andina.

Similarly, an ONP spokesperson notes that this bonus will only take effect when the person retires, not before.

“They won’t see this recognition bonus withdrawal now, but when they retire,” he added.

The head of the UNP also commented to another media outlet that connection that it will be delivered to exporters will not be a very high figure as it is estimated to average SGD 3,600.

“People think that they will get a very high premium, but this is a contribution made a long time ago by people who passed by and in the National System they contributed a little normally, and it does not even reach 4000 Singapore dollars, which will be the amount of the recognition bonus. but for many people it turns out to be high. It will be S / 3600. We calculate the amount that will be provided for people who have reached the age of 65,” he told La República.

Regardless, it is currently estimated that approximately 4.6 million ONP affiliates will switch to AFP once the recognition bonus becomes official.

Source: RPP

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