COMPLAINT of the P&J of Peru



Government project on pensions is top-down and authoritarian

The Executive Branch has submitted Bill 6120-2023-PE to the Congress of the Republic  for debate and approval. This reform project also establishes a minimum pension of S/. 600.00 for members of the National Social Security Office (ONP) and the Pension Fund Administrators (AFP).

Alberto Otárola, President of the Council of Ministers, said, in this regard, that "We have agreed to send as a matter of urgency a bill that creates the new Peruvian pension system. This has been a debate that has been going on for several weeks, months, in the Executive Branch, in the Council of Vice-Ministers; we have set up an ad hoc commission for the agreement that we have finally adopted, and we believe that it will be a decision that will solve once and for all the serious problem that thousands of Peruvians are going through.  especially those who enter retirement age."

For his part, Alex Contreras, the Minister of Economy and Finance (MEF) said that the government "seeks to create a multipillar system that, for the first time in history, establishes a minimum pension for the private pension system, which has been established at S/600. This bill also incorporates new competitors as potential pension administrators: banks, municipal savings banks, rural savings banks, we are also incorporating insurance companies and investment banks, with the aim of reducing commissions."

The Executive's Bill (PL) joins previous projects that have not prospered in the previous legislature that were presented by Rosángela Barbarán of the Economy Commission and by Sigrid Bazán of the Labor and Social Security Commission.

CENAJUPE, together with the trade union federations and other pensioners' unions, indicated their opposition to the "PL Barbarán" and valued the PL of Congresswoman Bazán because they participated in the debate and in the preparation of this project, but it was rejected by the congressional majority, inclined to favor the AFP.

PL 6120-2023-PE is already in the hands of the President of the Congress of the Republic, Alejandro Soto. In this regard, the General Confederation of Workers of Peru (CGTP) and the CENAJUPE trade union have been questioning this project for being top-down, authoritarian and not taking into account international standards such as Convention 102 of the International Labour Organization (ILO C102), as requested in a letter sent to the President, the Committee on Labour and Social Security and the Committee on the Economy.  Banking, Finance and Financial Intelligence.

On the other hand, they intend to tie the "increase" to the approval of said bill without taking into account the mandate of the Constitutional Court 0009-2015-PI/TC that orders the Executive and Legislative within three years to gradually increase the minimum pensions until their equivalent of the Minimum Living Wage (RMV).

Both CENAJUPE and the CGTP consider that beyond the congressional debate it is part of the national pension, labor and citizen agenda, which is why they have been demanding the expansion of the debate with workers and pensioners and not allowing it to be approved without the opinion of the real actors, a matter of concern.