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This week the AFP met with the President Peter’s castle to propose reform of the private and public pension systems.
Pension reform has been discussed before by both the executive branch and Congress, but what do the Pension Fund Administrators (AFPs) propose?
During a press conference, President AFP AssociationGiovanna Priale points out that three pillars have been proposed for the reform of the pension system.
Priale points out that the first tier aims to guarantee a pension for all Peruvians as a baseline that prevents them from continuing into old age. poverty.
“There is another pillar, mandatory savings, which seeks to include creative tools that we have seen in other countries, such as a guaranteed pension for Peruvians, within tools or tax breaks,” he explained.
While the third pillar will be for workers independent and informal, which would be voluntary contributions.
“The meeting discussed the need for pension reform to ensure that all Peruvians have access to a decent pension, regardless of their employment status. In other words, it was not only about a system for dependent workers, but also about the inclusion of independent and informal ones,” Priale said.
In this voluntary pillar it is proposed that for every sun contributed employeethe state will contribute one sole more, and over time this amount will be capitalized.
Priale added that the reform would be “the main tool to fight old-age poverty and reduce inequality.”
He added that currently only 30% Peruvian save for social security, that is, only three out of 10 people.
Source: RPP
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.