on Thursday enacted the law that allows Peruvian citizens to withdraw up to 25% of their holdings in private pension funds to provide —as it states— economic support to the population and to reactivate the economy.
In a press conference held at the Parliament headquarters, Merino affirmed that the Legislative Branch acted "responsibly" in approving this initiative, which was submitted in early April and received no
comment from the Executive Branch.
"Therefore, in accordance with article 108 of the Constitution, this new Congress will proceed to enact the law. (…) We do so in the healthy recognition of the economic need of more than 6 million Peruvians who wait for help in this chaotic economic situation that we are facing," he expressed.
On April 3, Peruvian lawmakers approved the law that allows citizens to withdraw up to 25% of their pension savings, equivalent to 3 tax units (UITs), that is, under a cap of S/12,900 (US$3,824) for each affiliate.
Confrontation ruled out
After the enactment of the act, First Deputy Chairman Luis Valdez ruled out any confrontation between the Legislative and Executive Branches as a result of this decision and noted that, in this
fight against coronavirus (COVID-19), "all institutions should be more united."
For her part, Third Deputy Chairwoman Maria Teresa Cabrera stressed that "not everyone thinks the same" when living in a democracy, and the fact that there is a discrepancy —regarding the pension savings withdrawals from Pension Fund Administrators (AFP)— "cannot be called a confrontation."