Lima, 24 April 2023

SBS Resolution No. 1485-2023

The Superintendent of Banking, Insurance and Private Pension Fund Administrators

WHEREAS:

That, by Law No. 31670, published in the Official Gazette “El Peruano” on 13 January 2023, minimum pensions were created and alternative voluntary contributions for pension purposes are promoted;

That, Article 2 of the aforementioned Law No. 31670 states that the aim is to create a better pension culture through the setting of goals with a view to retirement with a minimum pension and to promote alternatives for voluntary contributions of members of the Private Pension System, charged to the refund of fourth and fifth category income tax, or refund of any other tax or credit balance in the name of the member;

That, for its part, the Sole Final Complementary Provision of the aforementioned Law empowers the Executive Branch to issue regulations for this law within a period no greater than ninety (90) calendar days;

That, accordingly, by Supreme Decree No. 065-2023-EF, published in the Official Gazette “El Peruano” on 18 April 2023, the Regulations of the aforementioned Law were approved, by which complementary provisions necessary for the adequate implementation of the provisions of Law No. 31670 are established;

That, Article 3 of the cited regulations establishes that any active member belonging to the Private Pension System (SPP) may voluntarily opt for a Target Minimum Pension (PMO), provided that they comply with the condition set regarding the amount, provided for in Article 3 of the Law;

That, for its part, paragraph 6.1 of Article 6 of the aforementioned regulations provides that, at the time of retirement, the member requests payment of the PMO. Then, the AFP evaluates whether the member has the Minimum Retirement Balance (SMJ), in accordance with the funds available in the Individual Capitalization Account (CIC), for the payment of the pension under the programmed withdrawal modality. The SMJ, in accordance with the definition contained in Article 2 of the aforementioned regulations, is the required capital, calculated under the programmed withdrawal modality, necessary to access a PMO at retirement age, in accordance with Law No. 31670;

That, Article 7 of the regulations states in its subsection ii), the termination of the opt-in to the PMO, when the member meets the requirements and requests access to any type of early retirement pension in the SPP, so the opt-in to the PMO is only applicable to the universe of members who meet the requirement of the legal retirement age retirement;

That, Article 8 of the regulations provides that when the member opts for the PMO, the AFP informs the member about whether or not there is a surplus of the SMJ, so by virtue of the provisions of Articles 7, subsection ii) and paragraph 6.1 of Article 6, the availability of the surplus with respect to the SMJ, referred to in paragraph 8.1 of Article 8 of the regulations, is enforceable from the moment of retirement by legal age of the member;

That, the First Final Complementary Provision of the regulations states that the Superintendency issues the complementary rules and approves the operational procedures necessary for the implementation of these regulations. In consequence, it is necessary for this Superintendency to establish complementary clarifications to operationalize the corresponding procedure, so that members may submit their retirement applications by legal age under a target minimum pension, within the timeframes and scope indicated in Law No. 31670;

That, in this sense it is necessary to introduce amendments to Title V of the Compendium of Superintendency Regulatory Rules of the SPP, approved by Resolution No. 080-98-EF/SAFP and its amendments, in order to provide a framework of reasonable and sufficient information on the part of the AFPs to the member, in order to promote, during their active stage, opting for options such as the target minimum pension, which allow guaranteeing a basic level of well-being under the modality of a pension, from the retirement age by legal age;

That, in that scenario, it is appropriate to amend the operational procedure for the exercise of options by the member when they reach the age of retirement or access the REJA, approved by SBS Resolution No. 2370-2016 and its amending rules, in order to incorporate in Article 4, referring to Step 2, a text that the AFP must include in the “Certificate of Estimates of Withdrawal and/or Pension Options” to inform the member about the implications of accessing the minimum pension and the pension surplus. Likewise, it is appropriate to amend Article 7 of the aforementioned operational procedure with the purpose of including in the cited “Certificate of Estimates of Withdrawal and/or Pension Options” the alternative of the target minimum pension and the withdrawal of the pension surplus;

That, likewise, Article 8 of the operational procedure set out in the aforementioned SBS Resolution No. 2370-2016, referring to Step 3, must be amended, in order to include the terms of the exercise of the option to opt for the target minimum pension and the withdrawal of the pension surplus, under Law No. 31670 and its complementary rules;

That, in addition, it is also necessary to amend Articles 3A and 9A of Title VII of the Compendium of Superintendency Regulatory Rules of the SPP, in order to extend the application of the characteristics and services applicable by the AFPs in the decumulation phase to the offer of the PMO to members, as well as

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Article 41° of the aforementioned title, referring to the procedure to be followed by the AFP when it notifies the member that they have the right to have information about access to and enrollment in the target minimum pension and withdrawal of the pension surplus;

That, finally, it is necessary to amend Circular N° AFP-109-2010, referring to operational codes, in order to adapt it to the aforementioned provisions;

With the approval 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 N° 26702 and its amendments, and subsection d) of article 57 of the SPP Law, and in view of the exceptional conditions set forth in article 14 of Supreme Decree N° 001-2009-JUS and its amendments;

RESOLVES:

Article One.- On Enrollment in the PMO. In accordance with the provisions of Article 3 of the Regulation of Law N° 31670, the AFP must make available to its active members in-person or remote service channels, so that they can obtain information and voluntarily enroll in a Target Minimum Pension (PMO).

Through said service channels, the AFP must provide information about enrollment in the PMO, which includes at least the following aspects:

i) The characteristics of the PMO; which cannot be less than the CBC throughout the accumulation stage as an active member, with the AFP being empowered to update said value if at any time the PMO chosen by the member is less than the CBC, and this must be communicated by the AFP to the member at the agreed opportunity, in accordance with Article Four.

ii) The calculation of the required Minimum Retirement Balance (SMJ), its adjustments due to changes in the composition of the member's family group and corresponding projections.

iii) The benefits of enrollment.

iv) The grounds for termination of enrollment in the PMO.

v) The calculation of the Surplus of the SMJ, the conditions for its access and availability from the moment of retirement by legal age.

The channels implemented for enrollment must have cybersecurity and information preservation mechanisms that mitigate the risks of identity impersonation of members, as provided in the applicable regulations.

If the member decides to enroll in the PMO, the member communicates to the AFP:

a) the amount of the PMO.

b) the composition of their family group; as well as variations that occur during their active stage.

SUPERINTENDENCY OF BANKING, INSURANCE AND AFP Republic of Peru

c)
Their decision as to whether for the calculation of the SMJ they will consider their AVSFP and/or AVCFP balance; said data may be modified by the member throughout their working life, based on the PMO expectations that they set.

d)
The frequency and the channel to be informed, among those offered by the AFP.

The AFP must keep a record of this and issue a certificate of enrollment.

If the member dies before completing the procedure for their PMO, the beneficiaries are subject to the procedure for their survivor pensions under the corresponding procedures of Title VII.

Article Two.- On modification or withdrawal

from the PMO during the active stage. The AFP must register and keep a record of the modification or withdrawal from the PMO of a member during the active stage.

Likewise, the variation in the CIC balances due to withdrawals, such as, for example, to dispose of up to 25% of the Pension Fund of the members of the Private Pension System for the purchase of a first property, is informed by the AFP to the member in the corresponding account statements.

Article Three.- On the exchange of information of the AFPs in case of transfer or pure multi-affiliation. The AFPs must establish the

exchange mechanisms that allow transmitting the information of enrollment in the PMO to the destination AFP in the case of transfers or, to the AFP where the current CUSPP remains, in case of pure multi-affiliation; for the pertinent purposes.

Article Four.- On the Information of the PMO during

the active stage. The AFP must inform and, thereby, make available to the member, at the frequency agreed with said member and under the means it considers appropriate, the following:

a) Information on the Minimum Retirement Balance (SMJ) required to reach the Target Minimum Pension (PMO), referred to in Law N° 36170, in which the updated value of the required balance must be shown.

b) Information on the amount pending to reach the SMJ, according to the CIC balance recorded in the individual account.

Article Five.- On the determination of the Minimum Retirement Balance (SMJ). For the determination of the SMJ, the AFPs must consider the

following:

a) The information on the member's personal data.

b) The composition of the family group declared in their enrollment application.

c) The technical interest rate determined by the Administrator for the Programmed Withdrawal modality.

For this purpose, the required unit capital used to determine the SMJ is calculated considering the day, month and year in which the member reaches the legal retirement age, unless the member is over 65 years of age, in which case the date of the calculation shall be considered.

The updating of the SMJ up to retirement age considers the changes that occur in the value of the Basic Consumption Basket (CBC), the information on the member's data and their family group, the variations in the balance of the member's Individual Capitalization Account due to credits or charges made.

Article Six.- On the promotion of voluntary contributions during the active stage and the PMO. Incorporate Article 88-A into Title V of the Compendium of Regulatory Standards of the SPP, approved by Resolution No. 080-98-EF/SAFP and its amendments, in accordance with the following text:

"Article 88-A.- Voluntary contributions and the promotion of the PMO

For the purpose of ensuring that members have a PMO at the legal retirement age, the AFP may promote the adoption of voluntary contribution plans by members during their active stage. To this end, based on the record of a periodicity of contributions throughout their working career, members may make use of mechanisms such as Commercial Allies or others provided for in the regulation of the SPP."

Article Seven.- On the information of the PMO prior to the legal retirement age. Amend subparagraphs o), p) and q) of Article 41 of Title VII of the Compendium of Regulatory Standards of the SPP, approved by Resolution No. 232-98-EF/SAFP and its amendments, referring to Benefits, in accordance with the following text:

"Article 41.- Procedure to be followed by the AFP:

(…)

o) The right to have information about the withdrawal options available in the SPP and about opting for the Target Minimum Pension (PMO) by effect of Laws No. 30425 and No. 31670, respectively.

p) The right to be adequately informed and guided during the advisory stage by the AFP, once the member exercises their right to withdrawal and/or pension options provided for in Law No. 30425 or opts for a PMO provided for in Law No. 31670.

q) The right to have a diversity of channels, both in-person and remote as provided by the AFP, in order to exercise their right to withdrawal and/or pension options provided for in Laws No. 30425 and No. 31670."

Article Eight.- On the information of the PMO and the exercise of the retirement option at the legal age. Amend the Operating Procedure for the exercise of member options when they reach retirement age or access the REJA, approved by SBS Resolution No. 2370-2016 and its amending rules:

1. Incorporate letter l) of Article 5 under the following text:

"Article 5.- Step 2:

(…)

l) Informs them about the surplus with respect to the Minimum Retirement Balance (SMJ) and its availability when they opt for the Target Minimum Pension (PMO), at the time of retiring by legal age, in accordance with the provisions of Law No. 31670 and its regulations."

2. Incorporate subparagraph a.14) of Article 7 under the following text:

"Article 7.- Withdrawal and/or pension options.

(…) a.14) Target Minimum Pension (PMO) and the surplus with respect to the SMJ, available only to those who retire by legal age."

3. Incorporate numeral g) and subparagraph vii) of Article 8 under the following texts:

"Article 8.- Step 3:

(…) g) If they opt for the payment of the PMO, from the legal retirement age, the AFP confirms the amount of the SMJ for the payment of the respective surplus within the same period provided for in letter a) and of the pension under the programmed withdrawal modality.

(…) vii. If they opt for the payment of the PMO, from the legal retirement age, the amount and availability of the surplus with respect to the SMJ must be recorded in accordance with the provisions of Law No. 31670."

Article Nine.- On the PMO and the decumulation process. For the purposes of the processes contained in this resolution linked to the decumulation phase of a member's funds, the provisions of Articles 3A and 9A of Title VII of the Compendium of Regulatory Superintendency Standards of the SPP shall apply.

Article Ten.- On the operational codes.

Amend Circular No. AFP-109-2010, referring to operational codes, under the following terms:

"In order to comply with the provisions of Law No. 31670, amend Circular No. AFP-109-2010 in order to use the following Operational Codes for the recording of credits and charges to the CIC of Mandatory Contributions resulting from this type of request, as follows:

In the group "Regular contributions (0_)":

• 1a Credit for tax payment refund.

In the group "Deliveries (8_)":

• 8a Withdrawal of Surplus of Minimum Retirement Balance – Law No. 31670."

Article Eleven.- On validity. This resolution enters into force on the day following its publication in the Official Gazette El Peruano, with an adaptation period of thirty (30) business days.

Register, communicate and publish.

SOCORRO HEYSEN ZEGARRA
Superintendent of Banking, Insurance and
Private Pension Fund Administrators