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President Vizcarra: It is time to reform the pension system in Peru

15:55 | Lima, Apr. 1.

The President of the Republic Martin Vizcarra on Wednesday afternoon affirmed that the time has come to review the pension system —both private and public— in the country for the benefit of Peruvian contributors and future retirees.

The Head of State indicated that the commitment of his Government is to carry out the comprehensive reform of this system —which also includes the Public Pension System (ONP)— once the coronavirus emergency has ended in the country.

"What is also clear is that the Pension Fund Administrators (AFP) have shown a behavior that we —as the majority of the population— reject. It included interests and commissions that have been abusive and that deserve a comprehensive reform of the AFP system. Let's do it. That is the proposal. Let's do a comprehensive reform project together," he expressed.

In this sense, the top official requested Congress to work with the Executive Branch on a new bill, because the Legislative Branch's initial bill to authorize the withdrawal of 25% of AFP funds might cause problems to the country's financial system.

"I think the time has come to review the AFP, but not through the release of a fund that can now cause damage due to the distortions we have mentioned," he stated.

The statesman said that the Executive Branch maintains the same willingness to talk and continue talking with lawmakers to reach the best agreement for the sake of the country.

As is known, the Executive Branch made the decision for AFP clients to withdraw up to S/2,000 (about US$581) from their funds in April. The measure is intended to benefit those who have been jobless over the last six months.

Remarks were made in a virtual press conference, within the

framework of a mandatory social isolation imposed to prevent the COVID-19 from further spreading in the South American country.

Initially set to last from March 16 to 30, the measure has been extended thru April 12.

On this occasion, the President was joined by members of the Council of Ministers. The event was held at the Government Palace in Lima.

Wednesday marks the seventeenth day of mandatory social isolation.

Presidente @MartinVizcarraC: No defendemos a grupos económicos. En una época de emergencia debemos atender a las personas que cuentan con menos recursos y necesitan más ayuda. Sin embargo, sabemos que es necesaria una reforma integral del sistema del fondo privado de pensiones.
— Presidencia Perú (@presidenciaperu) April 1, 2020

Presidente @MartinVizcarraC: Hoy se ha publicado, en el diario El Peruano, el Decreto de Urgencia N.º 034-2020, que autoriza el retiro extraordinario de S/ 2000 para afiliados de las AFP que no han efectuado aportes de manera consecutiva durante los últimos 6 meses.
— Presidencia Perú (@presidenciaperu) April 1, 2020

(END) MDV/JJN/MVB

Published: 4/1/2020

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President Vizcarra: It is time to reform the pension system in Peru

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