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Peru Mulls Pension Fund Access Amidst Debate

Proposed ONP withdrawal sparks controversy over economic relief vs. system stability.

A proposal allowing affiliates of Peru’s Pension Standardization Office (ONP) to withdraw up to 10,700 soles is generating considerable debate. The initiative has ignited discussion within the Congress of the Republic of Peru, and drawn attention of over 4 million contributors.

Key Development

Congressman Elías Marcial Varas, representing the Juntos por el Perú party, formally introduced the legislative measure. The bill proposes permitting a one-time withdrawal of up to 10,700 soles from pension funds managed by the ONP.

This sum equates to two Tax Tax Units (UIT), each valued at 5,350 soles in 2025. The proposed disbursement would occur in two stages: an initial 5,350 soles payment, followed by a second payment 30 days later.

Eligibility Requirements

The bill sets forth specific criteria for eligibility, including:

• Not having previously received a recognition bonus for migrating from the ONP to a private AFP.
• Not currently receiving a pension from the National Pension System.
• Not having initiated a migration to an AFP.

Concerns and Warnings

The Ministry of Economy and Finance (MEF) and the ONP have cautioned that such withdrawals could jeopardize the sustainability of the National Pension System. The SNP operates under a pay-as-you-go model with a structural deficit.

In 2023, for instance, contributions from active workers were insufficient to cover total pensions paid, requiring the State to bridge the gap using fiscal resources. According to a recent report, Peru’s aging population is expected to further strain the pension system, with the dependency ratio projected to increase significantly by 2050 (CEPAL 2021).

Political Landscape

Despite these warnings, the proposal enjoys political support, particularly from factions that have championed AFP withdrawal initiatives. Supporters argue the measure is vital for alleviating the economic strain on workers lacking bonuses.

Next Steps

The bill is slated to enter the Economy Commission for evaluation soon. Unions and ONP contributor collectives are mobilizing to advocate for its swift approval, demanding “equal treatment” with private system affiliates.

Conversely, business unions and policy experts are urging comprehensive pension reform in Peru. This reform would address coverage, financial sustainability, and ensure adequate pensions, rather than relying on partial, temporary solutions.

If the 10,700 soles withdrawal project clears the commissions, it will proceed to the Congress Plenary for debate. Approval would require a simple majority. Should it pass, the Executive Power could either enact it or raise objections, which Congress could then override with a qualified majority.

The debate is poised to continue, underscoring the conflict between immediate economic relief and the long-term stability of Peru’s pension system.