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Peru's Congress approves bill for return of public pension savings

Peruvian Congress headquarters. Photo: Congress of the Republic of Peru.

Peruvian Congress headquarters. Photo: Congress of the Republic of Peru.

10:16 | Lima, Aug. 25.

The Congress of the Republic on Tuesday approved a bill to return up to S/4,300 (around US$1,200) from their pension savings to active and inactive Public Pension System (ONP) affiliates.

The measure applies to active and inactive affiliates pursuant to Decree Law No. 19990 of the National Pension System, administered by the Public Pension System (ONP).

The text was passed in Parliament with 106 votes in favor, 3 against, and 15 abstentions. 

It was approved in a first round of voting in the early hours of Tuesday.

The legal initiative would allow —exceptionally and for the only time— the return of contributions worth up to one Peruvian Tax Unit (UIT), which is equivalent to S/4,300 (around US$1,200).

The text also provides that those aged 65 years or older, who contributed to the National Pension System (SNP) but have not met the requirements to receive a pension, have the right to a refund of all their contributions.

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Published: 8/25/2020