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FIAP > Destacados Boletines > FIAP celebrates the 25th anniversary of the Peruvian private pension system by signing the “Lima Agreement”

FIAP celebrates the 25th anniversary of the Peruvian private pension system by signing the “Lima Agreement”

16 October, 2019

On the occasion of the 25th anniversary of the Private Pension System (SPP) in Peru, the International Federation of Pension Fund Administrators (FIAP) met in Lima on July 12, 2019, to analyze the achievements of the Peruvian system, and also signed the “Lima Agreement”.

According to the Discussion Paper “The SPP’s pensions 25 years after its creation” drawn up by the Association of AFPs (AAFP), the current net replacement rate achieved by SPP pensioners is up to 72 % of their average salary over the last 10 years. Those who paid the highest contribution rates achieved the highest pension levels. This achievement is even more significant if one considers that the SPP in Peru is an individually funded system that has not yet reached maturity, since it does not have pensioners who have contributed for the entire duration of their working lives.

The “Lima Agreement”, signed within the framework of the 25th anniversary of the Peruvian SPP, comprises a total of eight main pillars, the most relevant being: a) promote efficiency in fund management and the application of investment strategies to increase the savings of members; and b) promote the creation of a stable legal framework that upholds the purpose of the system, namely to provide pensions.

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