PERU

On September 18, the Executive branch sent Congress a partial veto of the initiative allowing people to withdraw up to S/4,300 applicable to active and inactive contributors to the Pension Normalization Office, and allowing pensioners to withdraw S/930. The text approved by the legislators allows contributors who, at the age of 65, have not been able to access a pension to withdraw 100% of their contributions. The observations are now to be analyzed by the Economic Committee.

The Executive branch pointed out that the text approved “denatures the intangible nature” of pensions, which “is not related to their reason for existing, which is to guarantee the possibility of accessing a pension.” The withdrawal of people’s contributions would have a serious impact on contributors’ right to a pension.

Likewise, the Executive branch also considers that the proposal approved by Congress “would openly violate what is established in the Political Constitution of Peru; and the Tax Code on the intangibility of pension savings and their nature as a reserved tax; as well as the pronouncements of the Constitutional Court on this matter.”