Resolution SBS No. 4476-2013: Affiliation of Independent Workers to AFP Habitat Starting August 1, 2013

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239 Lima, July 17, 2013

Resolution S.B.S. No. 4476-2013

The Superintendent of Banks, Insurance and Private Pension Fund Administrators

CONSIDERING:

That, by Law No. 29903, the Law Reforming the Private Pension System was approved, which modifies the Single Consolidated Text (TUO) of the Law on the Private Administration of Pension Funds System (SPP), hereinafter referred to as the Law, approved by Supreme Decree No. 054-97-EF;

That, by Supreme Decree No. 137-2012-EF, provisions were issued for the application of Law No. 29903, specifically regarding the first bid and awarding of the individual account service;

That, according to Article 2 of Law No. 29903, the bid for the administration service of capitalization individual accounts for workers joining the SPP was established;

That, Article 33 of the Law establishes that the independent worker affiliates to the SPP in the AFP of their choice, except as stated in the second paragraph of Article 6 of the aforementioned Law;

That said Article 6 empowers the Superintendence to determine that independent workers be included within the universe of affiliates covered by the bid referred to in Article 7, being able to issue the regulatory norms regarding the matter for this purpose;

That, by Supreme Decree No. 068-2013-EF, the Regulation of the Law Reforming the SPP has been issued;

That, by virtue of the issuance of the aforementioned regulation, the period for the entry into force of Law No. 29903 is calculated, starting from one hundred twenty (120) days from the day following the publication of said regulation in the Official Journal El Peruano, that is, starting from August 1 of this year;

That, in such virtue, with the entry into force date of the obligation to contribute to a pension system for an independent worker who does not exceed forty (40) years of age approaching, it is necessary for the Superintendence to exercise its attribute provided for in said Article 6 of the Law;

That, in this sense, it is important to mention that when Resolution SBS No. 6641-2012 was issued, which approved the ad hoc procedure for the assignment of workers joining the SPP, prior to the first bid of affiliates and based on the provisions of the Twenty-First Final and Transitional Provision of the Law, it was determined that they be affiliated with the AFP offering the lowest administration commission, within the period ranging from 45 days after the publication of Law No. 29903 until before the start of the first bid referred to in Article 7-A of the TUO of the SPP Law;

That, in such sense and in order to maintain consistency with a previous exercise of assignment of independent affiliates provided for in the aforementioned resolution, it is necessary for the Superintendence to make use of its faculty provided for in Article 6 of the Law, in a manner concordant with a recognition of the rights of independent workers who, being obliged to belong to a pension system, choose the SPP;

That, this condition, in terms of the reasonableness of concepts supporting a pension system based on accumulation under individual capitalization of pension contributions, becomes tangible when observing as an assignment criterion, the value of the commission for the administration service, understanding that other factors of equal or greater importance, such as profitability from the administration of pension funds, cannot exhibit said factor as a comparative support variable, insofar as its present value cannot be replicated in the future;

That, to such effects, the value of the commission for the administration service does have the particularity of evidencing a hierarchy that allows ordering, from least to greatest, the value for the provision of the administration service of individual capitalization accounts;

That, having established that Article 7A of the TUO of the SPP Law states that the Superintendence will bid the administration service of individual capitalization accounts of mandatory contributions of workers joining the SPP, in order that they be affiliated with the AFP offering the lowest administration commission, every twenty-four (24) months, and that the maximum period for the first bid and awarding is December 31, 2012, it is necessary to take this reference rule to fix the criterion supporting the decision assumed by the Superintendence;

That, although the Superintendence's attribution to establish the decision rule regarding which AFP an independent worker who decides to belong to the SPP must join has application starting from August 1, 2013 by virtue of what Law No. 29903 provides, it is necessary, given the imminent implementation of such obligation to belong to a pension system for independent workers who do not exceed forty years of age, to provide this regulation with due advance to the participants of the SPP;

That, AFP Habitat resulted as the awardee of the first bid for affiliates referred to in Article 7-A of the TUO of the SPP Law;

Being in accordance with the opinion of the Adjunct Superintendencies of Private Pension Fund Administrators and Insurance and of Legal Advice; and,

In exercise of the attributes conferred by numeral 9 of Article 349 of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendence of Banks and Insurance, Law No. 26702 and its amendments, subsection d) of Article 57 of the Single Consolidated Text of the Law on the Private Administration of Pension Funds System,

approved by Supreme Decree No. 054-97-EF, and the second complementary and final provision of Law No. 29903, and based on the exception conditions provided for in numeral 3.2 of Article 14 of Supreme Decree No. 001-2009-JUS;

RESOLVES:

Sole Article.- Designate that, in the exercise of the faculties provided for in Articles 6 and 33 of the SPP Law, workers who join as independent from August 1, 2013 to the SPP, must affiliate with AFP Habitat in its condition as the awardee of the first bid for affiliates.

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DANIEL SCHYDLOWSKY ROSENBERG Superintendent of Banks, Insurance and Private Pension Fund Administrators