Tensions in Congress over seventh withdrawal of pension funds

The commissions of the Congress of the Republic are in the midst of a dispute over the approval of a seventh withdrawal of pension funds managed by the AFPs, in an attempt to provide economic relief to affiliates amid the current crisis. The Commission of Consumer Defense and Regulatory Bodies of Public Services (Codeco) and the Commission of Economy, Banking, Finance and Financial Intelligence have renewed interest in promoting this seventh withdrawal, sparking a debate on the need to adapt the pension system to the demands of the affiliated population. In yesterday's session, Codeco approved by majority to request authorization from the Congress Board of Directors to refer three bills related to the withdrawal of up to S/ 20,600 from pension funds to its working group. Wilson Soto, president of this commission, argued that this measure responds to the clamor of the affiliated population for liquidity to face economic difficulties. On the other hand, César Revilla, president of the Economy Commission, stated that they already have a report that includes a new release of retirement savings, as part of a proposal for reforming the Peruvian pension system. However, Jorge Guillén, associate professor at ESAN, criticizes this approach as populist and lacking sense, considering that it contradicts previous efforts to comprehensively reform the pension system. Guillén warns that a new withdrawal could further compromise the future of those who already have limited retirement savings. This dispute reflects the tensions between providing immediate relief to the population and ensuring the long-term sustainability of the pension system. While some seek to meet urgent demands, others warn of the risks of sacrificing the future for short-term benefits. The debate on the seventh withdrawal of AFP funds highlights the complexity of finding a balance between the present and future needs of pension system affiliates in Peru.