TC declared unfounded unconstitutional lawsuit against withdrawal of funds from the AFP




The Constitutional Court (TC) declared unfounded the claim of unconstitutionality filed by the South Lima Bar Association against the law that empowers members of the Private Pension Fund Administration System (AFP) to withdraw their pension funds.


The resolution points out that the exceptional situation, such as what happened during the covid-19 pandemic, justifies the authorities to take prompt, timely and appropriate measures to alleviate the economic situation of households and businesses.

“It is important to note that the authorization of the withdrawal was not intended to affect all the accumulated funds, but only up to a maximum of 4 UIT and for a peremptory time, subject to requirements,” the resolution refers.

It also indicates that the nature of the contributions to the Private Pension System is that it is “a forced private savings and administration of personal funds, which are always the assets of the contributors.”


Likewise, it specifies that the legal nature of the Private Pension System does not correspond to social security, and, consequently, does not affect the constitutional mandate of intangibility that the Constitution gives to social security funds.

“It is constitutionally lawful that contributors can allocate their funds to an application other than those that justified their creation,” he stresses.

Without prejudice to this, the TC specifies that the funds of the Private Pension System are intangible against arbitrary interventions by the State, as they constitute the assets of the affiliates protected by the guarantee of inviolability of the right to property, enshrined in article 70 of the Constitution. and in the savings guarantee declared in article 87 of the Constitution.

In the ruling, the Collegiate exhorted the Congress of the Republic and the Executive Power to face the crisis of the Private Pension System and the extreme need of the affiliates to dispose of the accumulated funds, so that they articulate efforts in order to legislate in time a comprehensive reform of the public and private pension system is reasonable, with the aim of constituting a true social security system.

Source: The Peruvian

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