The Members’ Assembly of the International Federation of Pension Fund Administrators, FIAP, held in Santiago, Chile, on May 16,
- Expresses its deep concern that the Law in the Republic of Peru that allows the one-time withdrawal of 95.5% of the balances saved in the individual accounts of workers when they reach the official retirement age, or meet the requirements for obtaining an early pension, is still in force.
- It believes that this law defeats the purpose of the pension systems, which is to postpone current consumption to ensure income in old age.
- It is worth pointing out that pension systems are mandatorily established, even with tax incentives, so it makes no sense to allow the full withdrawal of the saved capital when pension payments begin.
- It expresses its concern regarding what the Peruvian authorities will say to pensioners when they have exhausted their savings, although the congressmen and others who approved this law will probably no longer be able to the held accountable for the situation of those who will not have the means to survive in old age. It is worth mentioning that 220 thousand people have withdrawn a total of US$ 5,134 million to date.
- It points out that this situation not only affects Peruvian workers, but also extends to the other countries of the Pacific Alliance. In fact, due to the increase in migratory movements, the member countries of the aforementioned Alliance had advanced in a fund portability agreement, in order to allow workers to transfer their funds to the countries where they currently reside.
The discussion of this agreement has been paralyzed due to the risk that the pension savings of workers from other countries can be spent for non-pension purposes through the Peruvian pension funds.
Subscribed by: The Board of Directors of the International Federation of Pension Fund Administrators (FIAP)
- Mr. Guillermo Arthur – FIAP President
- Mr. Santiago Montenegro – FIAP Vice President
Chairman, Colombian Association of Pension and Unemployment Fund Managers, ASOFONDOS.
- Mr. Angel Martinez-Aldama – FIAP Vice President
Chairman of the Association of Collective Investment Agencies and Pension Funds, INVERCO, Spain.
- Mr. José Bernardo González Rosas – Vice President FIAP
Chairman of the Mexican Association of Pension Fund Managers, AMAFORE, Mexico.
- Ms. Giovanna Prialé – Vice President FIAP
Chairman of the Peruvian Association of Private Pension Fund Managers
Download the FIAP Declaration in PDF here
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