The recognition bonus will be credited when the contributor retires.

Shipping controversy continues Recognition Bonusfor contributors to the National Pensions Authority (ON PAGE), which migrated to Private pension system since 2002, since this measure will require large financial costs, but also will not bring the benefits that many people think about.

While filing a declaration of unconstitutionality prior to constitutional CourtAccording to Victor Hugo Montoya, head of the ONP, this recognition bonus is not an instant payout.

“The Recognition Bonus will be delivered when you anniversaries; that is, if they are 40 years old and want to go to AFP you leave, and he will see the money only at the age of 65, ”Montoya explained.

In addition, contrary to what a contributor might think, the official assured that on average, the money saved is not that great, in fact, it does not even reach 5,000 Singaporean dollars.

“People think they have a lot of money saved and it is calculated that on average they contributed 3,600 soles, which is not that much,” he explained.

Old age pension under threat

Through the RPP Noticias, the official also warned that the measure is inconvenient as it requires a high budgetary cost of 40,000 million sols, and in the first year of implementation alone, it could lead to public spending of 5,800 million sols, which will affect pensioners receiving a pension.

“To pay pensions to 700,000 pensioners, about 5,000 million a year are needed, of which 3,800 are paid from the money of depositors, and the rest (more than 1 million) comes from the state treasury, if there are depositors, the deficit will grow and will continue taken over by the state,” he said.

Victor Hugo Montoya also stressed that they define with Ministry of Economy and Finance file a claim in constitutional Court to prevent these problems from occurring. For him, Congressional intent is complicated because both the UNP and the SPP have “different logic.”

“They want to connect the two systems, the ONP system where the depositors deposit month after month, but this money does not stay, it is given out to pensioners, so it is a distribution system different from AFP, where a person deposits in a bank, and what in As a result, saved, paid to a person, the system is a system of capitalization,” he said.