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FIAP > FIAP Newsletter > FIAP Statement: FIAP rejects Bill of Law authorizing members of the Peruvian AFPs to withdraw 95.5% of their contributions

FIAP Statement: FIAP rejects Bill of Law authorizing members of the Peruvian AFPs to withdraw 95.5% of their contributions

24 May, 2016

On Thursday, April 14, 2016, the Congress of the Republic of Peru approved a Bill of Law which, among other measures, authorizes members of the Private Pension System (SPP) who turn 65, or who qualify for the special early retirement system, to choose between receiving a pension or withdrawing up to 95.5% of the funds accumulated in their individually-funded savings account (CIC).

FIAP expresses its total rejection of the measures included in this Bill of Law, because, under the pretext of benefiting members and pensioners, they will irrevocably infringe upon their social security rights, defeating the purpose of the pension system. These measures can provide greater well-being in the short term, allowing members to make use of social security funds for purposes other than the financing of pensions, but at the cost of reducing or forfeiting the right to a pension and the support of the State in a highly vulnerable stage, such as old age. Thus, pensioners are exposed to a high risk of falling into poverty…

Download the full statement here.

NEWSLETTER FIAP:16

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