Lima, 9 August 2001

S.B.S. Resolution No. 589-2001

The Superintendent of Banking and Insurance

WHEREAS:

That, in accordance with the provisions of article 6 of the Single Ordered Text of the Law of the Private System of Pension Fund Administration, approved by Supreme Decree No. 054-97-EF, hereinafter the Single Ordered Text of the SPP Law, the process of transferring the individual capitalization account (CIC) of an affiliate from one AFP to another requires that the affiliate have six or more consecutive contributions in the AFP from which he/she wishes to transfer, as well as the payment of an amount for transfer expenses, the amount of which is defined by this Superintendency;

That Sub Chapter VI of Chapter I of Title V of the Compendium of Regulatory Superintendency Rules of the Private System of Pension Fund Administration, referring to Affiliation and Contributions, approved by Resolution No. 080-98-EF/SAFP and its amendments, regulates the procedures relating to transfers of affiliates within the SPP, which include the transfer of the affiliate's CIC from one AFP to another;

That, from the evaluations carried out, it is necessary to establish modifications to the regulatory framework of transfers in order to promote a scenario of greater competitiveness in the Private Pension System (SPP) industry that results in better service standards, both in terms of the duration of the process and its associated costs, all on the basis of an environment of transparency in information that promotes better decision-making by affiliates;

That, to that effect, given the evolution of the SPP industry, the expenses associated with the verification processes carried out by the AFPs, with respect to the transfer requests submitted, are internalized in the remunerations that the AFPs monthly charge their affiliates for the administration of the individual capitalization accounts, for which reason it is necessary for this Superintendency to establish a new amount for transfer expenses;

Having regard to the opinion of the Deputy Superintendencies of Private Pension Fund Administrators and of Legal Advisory; and,

In use of the powers conferred by numeral 9 of article 349 of the General Law of the Financial System and 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 Single Ordered Text of the Law of the Private System of Pension Fund Administration, approved by Supreme Decree No. 054-97-EF;

RESOLVES:

Article 1.- To replace Sub Chapter VI of Chapter I of Title V of the Compendium of Regulatory Superintendency Rules of the Private System of Pension Fund Administration, referring to Transfers, approved by Resolution No. 080-98-EF/SAFP and its amendments, with the following text:

“SUBCHAPTER VI TRANSFERS

Concept

Article 26.-

The transfer of an active affiliate from one AFP to another is generated when the affiliate, in accordance with the provisions established in this Subchapter, decides to transfer the funds of his/her CIC to another AFP.

The completion of the transfer procedure implies, by operation of law, the automatic disaffiliation from the AFP to which the affiliate had been contributing, called the originating AFP, and his/her consequent affiliation to the chosen AFP, called the destination AFP, retaining at all times the status of being incorporated into the SPP.

Requirements

Article 27.-

For the purposes of transfer to another AFP, the affiliate must have made payment, to the originating AFP, of at least the last six (6) consecutive monthly contributions accrued up to the month prior to the presentation of the transfer request.

In the absence of payment, the contributions that have been withheld by the employer shall be considered. In the case of workers who have the status of independent, only those contributions paid within the deadlines agreed by the affiliate with the AFP shall be taken into account for the computation. In the absence of agreement, monthly periods shall be considered, without, in any case, the regularization of contributions prior to the presentation of the request being computable for said purpose. In the event that a worker meets both statuses, the status of dependent shall prevail.

Transfer procedure

Article 28.-

For the purposes of initiating the transfer procedure, the affiliate must adhere to the following procedure, respecting the order indicated below:

a) Go to the agency or Pension Advisory Office (OAP) of the AFP to which he/she wishes to transfer his/her individual capitalization account, called the destination AFP, and obtain a transfer request form. The affiliate may also obtain the request directly from a promoter of the aforementioned AFP.

b) Proceed to fill out sections 1, 2 and 3 of the aforementioned request, with the filling out of section 3 corresponding to the sales promoter participating in the process.

c) Go to the originating AFP, accompanying the aforementioned request with the following:

• In the case of performing work as a dependent, the display of his/her identity document, as well as originals and copies of the two (2) pay slips immediately prior to the month in which he/she is located. In the absence of the pay slips, the affiliate may present any other document that reliably accredits the withholding of pension contributions by the employer in the corresponding months.

• In the case of performing work as an independent, only the display of his/her identity document, with the AFP being required to verify the payment of the two (2) last contributions immediately prior to the month in which he/she is located.

d) The representative or officer of the originating AFP shall verify the retention status of said contributions with the respective AFP, keeping copies of the corresponding payment receipts in the case of a dependent employee, or verify the payment of the respective contributions, in the case of an independent worker. If affirmative, they shall mark, on both the original and the copies, the box corresponding to numeral 4.1. of the transfer request, as well as sign and stamp it as a sign of conformity, indicating the place and date on which said verification is carried out.

e) The representative or officer of the originating AFP shall return the request to the member who wishes to transfer their CIC to the destination AFP.

f) The member must submit the transfer request to the officer responsible at the destination AFP so that sections 4.2. and 5 thereof are filled out, attaching a copy of the identity document as well as, in the case of having worked as a dependent employee, copies of the four (4) payment receipts for the months prior to those mentioned in literal c) of this article, thereby concluding the transfer procedure.

For the purposes of a transfer procedure, the following must be taken into account:

i. The sales promoter of the destination AFP shall be responsible for the veracity of the information contained in sections 1, 2, 3 and 5 of the transfer request.

ii. The originating AFP shall be responsible for maintaining permanent, fluid and quality service with respect to members who come to its agencies or OAP to carry out a transfer. The Superintendency may, based on the evaluations it carries out, establish minimum service requirements for the administrators that do not maintain behavior in accordance with sufficient standards regarding their customer service policies for this service.

iii. The transfer requests shall be distributed as follows: original for the destination AFP, the first copy for the member, second copy for the originating AFP and third copy for the employer, if applicable.

Grounds for inadmissibility

Article 29.-

The following are grounds for inadmissibility of the transfer, in addition to non-compliance with the requirement indicated in article 27 or the procedure provided in the previous article:

a) That the corresponding CIC is subject to a transfer procedure; or,

b) That the member is in any of the situations referred to in article 30 of this Title.

Conclusion of the transfer process

Article 30.-

The transfer process shall automatically be rendered ineffective if, as of the date of submission of the corresponding request and until the last calendar day of the last accrual month in the originating AFP, the member is found to be in any of the following situations:

a) Death;

b) Submission by the member of a request for annulment, or declaration by the Superintendency of the annulment of membership, as the case may be;

c) Submission of a request for evaluation and qualification of disability;

d) Submission of a pension request;

e) Authorization by the Superintendency of the merger between the originating AFP and the destination AFP of the member; or,

f) Processing of a Recognition Bonus whose documentation does not have the corresponding proof or title, in cases where the ONP has accepted the "Recognition Bonus Request", referred to in article 66 of this Title. Members shall be entitled to initiate the transfer process if the ONP, after acceptance of the "Recognition Bonus Request", rejects it in accordance with the provisions of Supreme Decree No. 180-94-EF and complementary provisions.

Term for the validity of the new membership in the destination AFP

Article 31.-

The first accrual month in the destination AFP shall correspond to the third month following that of the submission of the transfer request.

For the purposes of counting the eighty (80) days referred to in article 44 of the Regulations of the Law, said term is considered to comprise the period counted from the first day of the month in which the transfer request was submitted until the last day of the first accrual month in the destination AFP.

Obligations of the destination AFP

Article 32.-

The destination AFP, within the first ten (10) days of the month following the communication via network made by the Superintendency informing the conformity of the transfer, must carry out the following actions:

a) Communicate in writing to the employer and the member the first accrual month in the destination AFP, attaching to said notice copies of the transfer request form referred to in Annex II of this Title. The aforementioned notice to the employer must contain an indication of the retentions to be made and paid to the destination AFP; and,

b) Communicate in writing to the employer and the member the obligation to continue with contributions to the originating AFP for as long as the transfer procedure lasts, specifying the last accrual month in the originating AFP.

Obligations of the originating AFP

Article 33.-

Within the second accrual month in the destination AFP, the originating AFP must carry out the following:

a) Send the Member's Individual File to the destination AFP. This file must include:

i. A copy of the Account Statement - detailed version whose information matches the funds remitted to the destination AFP. The aforementioned account statement shall comprise the entire period of the member's permanence in said AFP.

ii. A report identifying:

    - The months with contributions in a situation of collection through administrative or judicial channels;

    - The months with contributions that are in a debt installment program; and

    - The other months in which the AFP does not record the payment of contributions;

b) Send the Recognition Bond to the destination AFP, so that it may proceed to order its custody as established in Article 8 of the Law. For this purpose, prior to the date of lifting the custody, the originating AFP shall notify the destination AFP so that it designates the custodian in charge of its receipt, who shall receive the documentation from the corresponding custodian of the originating AFP. At the end of each month, the destination AFP shall send via network to the Superintendency the list of members with respect to whom the physical transfer of the respective Recognition Bonds has been made;

c) Notify the member of the completion of the transfer process, expressly mentioning the monetary balance transferred and the respective number of units, as well as the report referred to in subsection a).

The destination AFP must verify the documentation described in the preceding paragraphs, assuming responsibility for its conformity and for the handling of the mentioned documents and balances, once they have been received.

Payments after the transfer

Article 34.-

Any payment received, credited or recovered by the originating AFP, corresponding to members for whom the transfer has already taken effect, shall be subject to the procedure provided for arrears in the pertinent provisions.

The payment of contributions from self-employed workers whose payment agreement signed with the originating AFP has covered a period longer than the last accrual month in said AFP shall also be subject to the procedure applicable to arrears.

Recovery of contributions in the collection process

Article 35-

In the event that the transfer of a member who has contributions in collection status is made effective, the responsibility for the collection of said contributions shall continue to be borne by the originating AFP. The balances thus recovered shall receive the treatment corresponding to arrears.

Coverage periods

Article 36.-

The coverage responsibility of the disability, survivorship and funeral expenses insurance of the originating AFP, under the terms established in Title VII of this Compendium, shall extend until the last calendar day of the last accrual month in the originating AFP, provided that the coverage conditions have been met, with the respective insurance companies being entitled to charge the premiums accrued in said period and contributed in the first days of the following month.

From the first accrual month in the destination AFP, members who have made the corresponding transfer effective shall be covered by the insurance company with which it has entered into a risk management contract for disability, survivorship and funeral expenses, in accordance with the provisions of the aforementioned Title VII of this Compendium.

Transfer security file

Article 37-

The AFPs must maintain a magnetic file with records of the accounts that have been transferred and eliminated since the beginning of their operations, which shall contain the minimum information determined by the Superintendency." Article 2.- In accordance with the provisions of Article 6 of the Single Ordered Text of the Law on the Private System of Pension Fund Administration, approved by Supreme Decree No. 054-97-EF and Article 44 of the Regulations of the Law, approved by Supreme Decree No. 004-98-EF, establish the amount of compensation for transfers at zero nuevos soles (S/.0.00).

FINAL AND TRANSITORY PROVISIONS

Operating procedures

First.- The Superintendency, by Circular, shall establish the operating procedures applicable to the originating and destination AFPs in the cases of members who submit a transfer request in the SPP.

Transition process

Second.- The destination AFPs that receive transfer requests during the month of September 2001 shall be subject to the conditions of the regulation established in Title V of the Compendium of Regulations of the Superintendency of the SPP, approved by Resolution No. 080-98-EF/SAFP and its amending resolutions No. 044-99-EF/SAFP and No. 185-99-EF/SAFP. However, for the purposes of the operating procedure of communication destination AFP – SBS – originating AFP, accrual month in the destination AFP and transfer of funds, they shall be subject to the same deadlines and conditions as the requests submitted in October of this year.

Transfer Request

Third.- Replace Annex II of Title V of the Compendium of Regulations of the Superintendency of the SPP, with the one accompanying this Resolution.

Migration of operating procedures

Fourth.- Within a period not exceeding twelve months, the Superintendency by Circular shall issue the provisions that allow a migration towards operating procedures of direct communication destination AFP – originating AFP.

Repeal

Fifth.- Repeal Resolution No. 549-96-EF/SAFP, as well as render without effect Annexes No. III, IV and V of Title V of the Compendium of Regulations of the Superintendency of the SPP.

Effective date

Sixth.- This resolution shall enter into force as of 1 October 2001 and shall apply to those transfer requests submitted as of its effective date.

Register, communicate and publish.

LUIS CORTAVARRIA CHECKLEY
Superintendent of Banking and Insurance