Lima, 13 May 2016

S.B.S. Resolution No. 2740-2016

The Superintendent of Banking, Insurance and
Private Pension Fund Administrators:

WHEREAS:

That, by Supreme Decree No. 054-97-EF, the Single Ordered Text of the Law of the Private Pension Fund Administration System was approved, hereinafter the SPP Law's SOT;

That, by Supreme Decree No. 004-98-EF, the Regulation of the aforementioned SPP Law's SOT was approved;

That, by Law No. 30425, the Law that amended the SPP Law's SOT and that extends the validity of the special early retirement regime was approved;

That, the aforementioned law, among other aspects, establishes the possibility that members who do not access a disability pension, and who are declared by a medical evaluation committee qualified by the Superintendency of Banking, Insurance and AFP with a terminal illness or cancer diagnosis that reduces their life expectancy, may avail themselves of the early retirement regime;

That, likewise, said law establishes the possibility that members declared with a terminal illness or cancer diagnosis, who apply for a disability pension, or for early retirement, may additionally request from the AFP the return of up to 50% of the contributions of the total available fund in their individual capitalization account, including its profitability, provided they do not have beneficiaries entitled to a survivor's pension in the SPP;

That, for this purpose, it is necessary to establish the regulatory provisions to carry out the operational procedure that allows members to access the aforementioned pension benefits, as well as to guarantee a framework of adequate information and guidance on the part of the AFPs as well as of the due evaluation and qualification on the part of the competent medical committees, in such a way that the right of members to know the main characteristics of the different modalities of retirement, disability and/or delivery of contributions in the SPP is safeguarded, for those members declared with a terminal illness or cancer diagnosis that reduces their life expectancy;

With the approval of the Deputy Superintendencies of Private Pension Fund Administrators and of Legal Advice; and,

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In use of the powers conferred by numeral 9 of article 349 of the General Law of the Financial System and of the Insurance System and Organic Law of the Superintendency of Banking and Insurance, Law No. 26702 and its amendments, and subsection d) of article 57 of the SPP Law's SOT, as well as by the provisions of the Third Final and Transitory Provision of its Regulation and on the basis of the exceptional conditions set forth in Supreme Decree No. 001-2009-JUS and its amendments;

RESOLVES:

Article One.- Incorporate Subtitle IV to Title VII of the Compendium of Regulatory Superintendency Rules of the Private Pension Fund Administration System, approved by Resolution No. 232-98-EF/SAFP and its amendments, according to the following text:

"SUBTITLE IV OPERATIONAL PROCEDURE FOR ACCESS TO PENSION BENEFITS FOR TERMINAL ILLNESS OR CANCER

CHAPTER I GUIDANCE AND ADVISORY PROCEDURE

Article 271.- Guidance and Advisory Program of the Administrator.

In order to allow the potential pensioner to know and understand the process of granting a disability pension or early retirement due to terminal illness (TI) or cancer (C) that reduces the member's life expectancy, the Administrators must develop a specialized guidance and advisory program, called "Guidance and Advisory Stage".

For this purpose, each AFP must define and develop a Plan aimed at informing about the process that potential pensioners are about to initiate.

For the purposes of this chapter, pension benefits are those that refer to a disability pension, early retirement or, if complying with the requirements established in Law No. 30425, accessing up to 50% of their contributions, including profitability.

Article 272.- Guidance and Advisory Stage.

The Administrator must make available to the member any of its available channels, in accordance with the provisions of article 274, in order to sign the "Guidance and Advisory Stage Form". Likewise, on the first occasion that the member requests information regarding access to a disability pension or Early Retirement due to Terminal Illness or Cancer, as well as on the occasion of signing the Application for Disability Qualification, and Declaration of Terminal Illness (TI) or Cancer (C), the AFP must provide guidance and advice, which must take into account, at least, the following information:

1. Definitions related to disability:

a) Disability condition;

b) Partial grade and total grade disability;

c) Temporary or permanent nature disability;

d) Medical Committee of the AFPs (COMAFP);

e) Medical Committee of the Superintendency (COMEC);

f) Accrual date of the disability pension; g) Preexistence Condition; h) Conditions of access to pension coverage; i) Grounds for exclusion from pension insurance in accordance with article 65; j) Date of occurrence of the disability.

2. Requirements and obligations linked to the disability pension, Early Retirement due to TI or C procedure:

k) The provisions of article 44 and 44A, regarding the accreditation of beneficiaries;

l) Requirements and documents necessary to initiate the disability, early retirement due to terminal illness or cancer procedure;

m) Withdrawal of contributions for pension purposes;

n) Withdrawal of pension surplus, as the case may be;

o) Choice of currency;

p) Pension Products;

q) Effects that the delivery of up to 50% of the CIC balance would have on the pension, a condition that applies when the member does not have beneficiaries.

Additionally, the Administrator must monitor each process linked to the disability pension procedure, Early Retirement due to ET or C, duly informing the potential pensioner regarding those documents, requirements, and/or procedures to be carried out soon, as well as monitoring those pending in the procedure to obtain the benefit, from its start until the potential pensioner receives a definitive pension, if applicable.

For these purposes, the AFP must prepare the “Orientation and Advisory Stage Form”, at least, with the following minimum content:

i. Type and number of identity document of the member;

ii. Names and surnames of the member;

iii. Address, telephone number and email address of the member;

iv. Date and time of the advisory session;

v. Description of the queries made;

vi. Type of procedure consulted;

vii. Observations of the member;

viii. Names and surnames of the staff who provided the advisory service at the AFP.

Article 273°.- Principles for developing orientation and advisory programs.

The AFPs must adhere to the following principles:

a) Didactic and easy to understand, in order to raise the quality of information and knowledge of potential pensioners regarding the processes cited in article 272°;

b) Objectivity, truthfulness and transparency in the information provided, in order to guarantee pension decision-making;

c) National scope, so that potential pensioners nationwide receive, under conditions of equality and equity, similar service from their AFP;

d) Timely and diligent attention, so that the member receives the advisory service at the appropriate time, avoiding delay in the process of access to the benefit.

Article 274°.- Channels available to the member for adequate orientation and advisory service at the time of requesting the exercise of access to the benefit.

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To carry out this procedure, the AFP must make available to members who wish to initiate the disability pension procedure, Early Retirement due to Terminal Illness or Cancer, the appropriate channels provided, both in person and remotely. For this purpose, the provisions of article 6° of the Operating Procedure for the exercise of member options when reaching retirement age or accessing REJA, approved by Resolution SBS N°2370-2016, shall apply insofar as applicable.

In addition to the channels set forth, the Administrators may implement additional means that allow expanding coverage and raising the quality of service within the SPP.

In any scenario, the orientation and advisory process is accredited by the signing - physical or electronic - of the “Orientation and Advisory Stage Form”, which must be part of the individual file and be delivered to the member. If the orientation and advisory service is carried out remotely, the Administrator must send the form to the address or send the corresponding file to the email address indicated by the member, within a period no greater than five (5) business days from the date on which the advisory service was provided.

CHAPTER II PROCEDURE FOR DECLARATION OF TERMINAL ILLNESS OR CANCER

Article 275°.- Medical committees that declare a condition of Terminal Illness or Cancer.

COMAFP and COMEC are the competent bodies to evaluate the applications submitted for Terminal Illness or Cancer, a function they carry out within the framework established by articles 148° and 176°, respectively.

All those functions indicated in articles 148A°, 153° and 178° that correspond to the aforementioned committees have scope for the declaration of Terminal Illness or Cancer that reduces the member's life expectancy.

Article 276°.- Functions of the physicians who are members of COMAFP and COMEC, and of the physicians who perform support functions in the SPP.

The functions performed by the member physicians who make up the aforementioned committees, the administrative staff and physician representatives of COMAFP, consulting physicians, observing physicians, and complementary independent advising physicians, as indicated in articles 149°, 150°, 150A°, 173°, 174°, 175°, 175A°, 185°, 191° and 194°, have scope with respect to the process of declaration of Terminal Illness or Cancer that reduces the member's life expectancy, the subject of this chapter.

In view of compliance with the objectives of the Disability Evaluation System, the Superintendency may establish particular and/or complementary functions.

Article 277°.- Pronouncements of the medical committees regarding Terminal Illness or Cancer.

COMAFP and COMEC, in order to issue their pronouncement for Terminal Illness or Cancer, must follow the process established in articles 148B°, 151°, 152°, 154°, 155°, 156°, 157°, 158°, 159°, 160°, 161°, 162°, 163°, 164°, 165°, 166°, 167°, 169°, 170°, 171°, 172°, 179°, 180°, 181°, 182°, 183°, 184°, 186°, 187°, 188°, 189°, 190°, 192°, 193° and 222°, referring to: holding sessions, operating premises, headquarters, schedule, quorum, deliberations, agreements, designation of representatives, impediments, vacancy, constitution of decentralized bodies of COMAFP,

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election process, ordinary and extraordinary sessions, financing of COMAFP, issuance of opinions, content of the minutes book, notification and filing of opinions, and request for consulting physicians.

In view of compliance with the objectives of the Disability Evaluation System, the Superintendency may establish particular and/or complementary conditions to those indicated above.

Article 278°.- Procedure for the declaration of Terminal Illness or Cancer.

The procedure for the declaration of Terminal Illness or Cancer is the one established in articles 197° and 218°, referring to the disability evaluation and appeal procedure, respectively. Likewise, the COMAFP or COMEC, as applicable, may summon the affiliate's treating physician, so that they present the condition of Terminal Illness or Cancer that is the subject of their decision, in accordance with the provisions of article 195°.

The procedure for the processes of Terminal Illness or Cancer in the case of unfavorable decisions by the COMAFP, distribution of the application, evaluation period, performance of additional examinations and payment of the expenses of medical examinations, shall be the one established in articles 196°, 198°, 199°, 207° and 208°, referring to disability.

In consideration of compliance with the objectives of the Disability Evaluation System, the Superintendency may establish particular and/or complementary conditions to those indicated above.

Article 279°.- Requirements to request evaluation for Terminal Illness or Cancer.

Affiliates who submit an Application for Disability Qualification, and Declaration of Terminal Illness or Cancer, in addition to the requirements established in article 195°, must attach the following:

a) Sworn Declaration of not having beneficiaries entitled to a survivor's pension, contained in Annex No. 19 of this Title. If said sworn declaration does not match the information contained in subsection b) of article 195° due to the condition of their marital status, it shall have no effect and shall not be accepted by the AFP.

b) When a declaration of Terminal Illness is requested, attach in original, the “Sworn Declaration of the Treating Physician of an Affiliate with Terminal Illness condition”, whose format and content shall be established by the Superintendency.

c) When a declaration of Cancer is requested, attach in original, the “Sworn Declaration of the Treating Physician of an Affiliate with a diagnosis of Cancer that reduces life expectancy”, whose format and content shall be established by the Superintendency.

In the case of the declaration provided for in subsection b), it must contain information referring at least to the following: presence of a serious or advanced disease or pathological condition; progressive and irreversible nature of the disease; life prognosis; as well as the lack of reasonable response to the specific medical treatment that the person has been receiving.

In the case of the declaration provided for in subsection c), it must contain information referring at least to the following: results of the pathological anatomy, and results of the evaluation carried out by applying the TNM scales (Tumor - lymph node invasion - distant metastasis), Karnofsky, ECOG (Eastern Cooperative Oncology Group), among other internationally accepted medical references of support.

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The Superintendency may establish complementary provisions in relation to the provisions of this article.

Article 280°.- Content of the Decision for Terminal Illness or Cancer.

The decision for Disability and Terminal Illness, or Disability and Cancer, in addition to the content established in article 200°, must contemplate the following aspects:

a) Declaration of Terminal Illness, when applicable.

b) Declaration of Cancer that reduces life expectancy, when applicable.

c) The support for the Declaration of Terminal Illness or Cancer that reduces life expectancy must be established as content of “Part I” of Annex A of the decision.

Article 281°.- Appeal Process for applications for Disability, Terminal Illness or Cancer.

The appeal process for Disability and Terminal Illness, or Disability and Cancer, must follow the procedure established in articles 216°, 217°, 219°, 220°, 221°, 222°, 223° and 224°, referring to the place where the appeal application is required, evaluation period of the COMEC, notification of the COMEC decision, unfavorable decision process, payment of the expenses of medical examinations, process for fraudulent appeals and administrative silence.

In consideration of compliance with the objectives of the Disability Evaluation System, the Superintendency may establish particular and/or complementary conditions to those indicated above.

Article 282°.- Process for requesting additional examinations and evaluations for Terminal Illness or Cancer.

The procedure for requesting additional examinations and evaluations for Disability and Terminal Illness, or Disability and Cancer, corresponds to the one indicated in articles 209°, 210°, 211°, 212°, 213°, 214° and 215°, referring to disability.

Article 283°.- Request for information from the Superintendency in the process of Terminal Illness or Cancer.

The Superintendency may request information from the COMAFP and the COMEC regarding the processes of Terminal Illness or Cancer, in a manner similar to the provisions of article 168°.

CHAPTER III EARLY RETIREMENT PENSION DUE TO TERMINAL ILLNESS OR CANCER

Article 284°.- Procedure for access to the Early Retirement pension due to Terminal Illness or Cancer.

The procedure for requesting an Early Retirement pension due to Terminal Illness or Cancer is subject to the procedure relating to the application for legal retirement pension, established in articles 43°, 44°, 44A°, 45°, 46°, 47°, 48°, 49°, 50°, 51°, 53°, 54°, 54A°, 55°, 56°, 58A° and 58B°. For this purpose, the following clarifications must be considered:

a) Condition of Early Retirement due to Terminal Illness or Cancer. Affiliates who, without meeting the age requirements for retirement at the legal age and provided they do not access a disability pension, present the condition of Terminal Illness or Cancer that reduces their life expectancy, duly certified in a favorable pronouncement from the COMAFP or COMEC, as applicable, have the condition of early retirement due to terminal illness or cancer.

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b) Accrual of the pension for Early Retirement due to Terminal Illness or Cancer. In accordance with the provisions of the second indent of article 5°, the pension for terminal illness or cancer, in the case of a favorable ruling, accrues from the receipt of the "Application for Qualification of Disability, and Declaration of Terminal Illness or Cancer" by the AFP.

c) Options for accessing the benefit. In order for the affiliate close to exercising their pension and/or withdrawal option - if applicable - to have a menu of the main options that help them make their decision responsibly, the Administrator must comply with the requirements established in article 7° of the Operating Procedure for the exercise of options by the affiliate when they reach retirement age or access the REJA, approved by Resolution SBS N° 2370-2016, to the extent applicable.

For this purpose, with regard to the holder, the estimates and calculation of the early retirement pension make use of the MI-85 mortality tables or those that replace them, which are used for cases of disability.

CHAPTER IV PROCESS FOR THE DELIVERY OF CONTRIBUTIONS FOR EARLY RETIREMENT DUE TO TERMINAL ILLNESS OR CANCER

Article 285°.- Requirements for the delivery of mandatory contributions for Early Retirement due to Terminal Illness or Cancer.

The affiliate who accesses Early Retirement due to Terminal Illness or Cancer who does not have beneficiaries entitled to a survivor's pension may request from the private pension fund administrator (AFP) the delivery of up to fifty percent (50%) of the mandatory contributions of their individual capitalization account (CIC), including the generated return. To do so, they must provide the AFP with the following:

a) A "Sworn Declaration of not having beneficiaries entitled to a Survivor's Pension", in accordance with the format that, as Annex N° 19, forms an integral part of this Title, and in accordance with the provisions of literal a) of article 279°.

b) An "Application for delivery of up to fifty percent (50%) of the Individual Capitalization Account (CIC) for affiliates without beneficiaries, and who have a Declaration of TI or C", in accordance with the format that, as Annex N° 20, forms an integral part of this Title.

Prior to the signing of the aforementioned Annex N° 20, the AFP must provide guidance and advice, in accordance with the conditions indicated in article 274°.

Article 286°.- Processing of the request for delivery of funds.

Upon receipt of the request contained in Annex N° 20 referred to in article 285°, the AFP must proceed with the delivery of the requested percentage within the following three (3) business days of receipt. For this purpose, the following must be observed:

a) The delivery benefit can only be requested and processed on a single occasion.

b) The payment corresponding to the delivery amount is made in accordance with the mechanisms commonly accepted for the payment of benefits in the SPP.

c) Once the payment order has been issued, the AFP must notify the affiliate, so that they can continue with the corresponding procedure.

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d) Once the delivery request has been processed, the affiliate must continue the Early Retirement due to Terminal Illness or Cancer procedure, as established in article 284°. The remaining balance left in the affiliate's CIC will be used for the calculation of the early retirement pension.

CHAPTER V PROCESS FOR THE DELIVERY OF MANDATORY CONTRIBUTIONS FOR DISABILITY WITH TERMINAL ILLNESS, AND DISABILITY WITH CANCER

Article 287°.- Requirements for the delivery of mandatory contributions for Disability with Terminal Illness, and Disability with Cancer.

Affiliates who access a Disability with Terminal Illness, or Disability with Cancer, who do not have beneficiaries entitled to a Survivor's pension, may request the delivery of up to fifty percent (50%) of the mandatory contributions of their individual capitalization account (CIC), including the generated return. For this purpose, they must sign the annexes indicated in literals a) and b) of article 285°.

Article 288°.- Processing of the request for delivery of funds.

The delivery request referred to in the previous article must be processed in accordance with the term indicated in article 286°. Likewise, the provisions of literals a), b) and c) of the aforementioned article must be taken into consideration.

The delivery process is independent of the capital formation process for pension, and may be carried out simultaneously. For this purpose, it must be taken into consideration that if the Disability event has coverage from the pension insurance, the additional contribution will be calculated with the total accumulated balance in the affiliate's CIC before the corresponding delivery was made, in accordance with article 12 of the Operating Regulation of Law N° 29426, approved by Resolution SBS N° 1661-2010 and its amending norms. On the other hand, if the Disability event does not have coverage from the pension insurance, the calculation of the disability pension will be made with the remaining balance left in the affiliate's CIC after the corresponding delivery has been made.”

Article Two.- Amend Annex No. 2, entitled Application for Disability Assessment and Qualification, of Title VII of the Compendium of Superintendency Regulations of the Private Pension Fund Management System, approved by Resolution No. 232-98-EF/SAFP and its amendments, which shall be published on the institutional Portal (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

Article Three.- Amend Annex No. 11, entitled Application for Appeal for Disability, of Title VII of the Compendium of Superintendency Regulations of the Private Pension Fund Management System, approved by Resolution No. 232-98-EF/SAFP and its amendments, which shall be published on the institutional Portal (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

Article Four.- Incorporate Annex No. 19, entitled Sworn Statement of not having beneficiaries entitled to a survivor's pension, into Title VII of the Compendium of Superintendency Regulations of the Private Pension Fund Management System, approved by Resolution No. 232-98-EF/SAFP and its amendments, which shall be published on the institutional Portal (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

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Article Five.- Incorporate Annex No. 20, entitled Application for delivery of up to 50% of the Individual Capitalization Account for members without beneficiaries, and who have a declaration of ET or C, into Title VII of the Compendium of Superintendency Regulations of the Private Pension Fund Management System, approved by Resolution No. 232-98-EF/SAFP and its amendments, which shall be published on the institutional Portal (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

Article Six.- Incorporate article 195-A° into Title VII of the Compendium of Superintendency Regulations of the Private Pension Fund Management System, referring to Benefits, approved by Resolution No. 232-98- EF/SAFP and its amendments, in accordance with the following:

"Article 195-A°.- Signing of Section IV of the Application for Disability Assessment and Qualification.- After verifying compliance with the requirements established in article 195°, the AFP, through its representative, must proceed to sign and complete the information in Section IV of the application, from which moment the disability assessment and qualification process begins.

The aforementioned signing must be done in triplicate, by virtue of the distribution of the application form established in article 196° of this Title."

Article Seven.- Replace subsection b) of article 175A° of Title VII of the Compendium of Superintendency Regulations of the Private Pension Fund Management System, approved by Resolution No. 232-98-EF/SAFP and its amendments, with the following text:

"Article 175A°.- (…) b) Prepare proposals for disability assessment and qualification reports."

Article Eight.- Replace subsection c) of article 1° and incorporate subsection c) into article 7° of the Operating Procedure for the exercise of options by the member upon reaching retirement age or accessing the REJA, approved by SBS Resolution No. 2370-2016, with the following text:

"Article 1°.- (…) c) Applicant for fund withdrawal: member who, complying with the conditions to access a fund withdrawal, set forth in subsection a), executes said decision as follows: i) partial, in a percentage less than 95.5% of the balance of their CIC; ii) total, delivery of 95.5% of the balance of their CIC. According to the provisions of the text corresponding to paragraph g) of article 5°, a similar treatment by the AFP extends to those new funds collected after their withdrawal decision, based on the armadas agreed by the member; in the case of the applicant for total withdrawal, they do not have the status of pensioner."

"Article 7°.- (…) c) In the case of pension estimates included in the Certificate of Estimates of Withdrawal and/or Pension Options, the AFPs must consider the definitive value of the Recognition Bond (BdR) appearing in the Verification Resolution issued by ONP when it recognizes one hundred percent (100%) of what was declared by the member, or the value accepted by the latter through a Letter of Conformity or the value of the BdR Title."

Article Nine.- This resolution shall enter into force on the day following its publication.

Register, communicate and publish.

JAVIER MARTÍN POGGI CAMPODÓNICO
Superintendent of Banking, Insurance and
Private Pension Fund Administrators (e)