translated from Spanish: Instruct AFPs deadlines to implement bonus delivery of up to $200,000

Through a trade sent last Friday to the seven pension fund managers (AFPs), the Superintendency of Pensions (SP) began the process of managing and paying the new bonus of up to $200,000 for two specific groups of members and beneficiaries of the pension system. The measure would benefit approximately 3,525,000 people and will be fully funded by the Estado.La New Law No. 21,339, which was published last Saturday in the Official Journal, contemplates the delivery of benefits according to two criteria:a) You will be able to access the $200,000 who as a result of withdrawals have been left with zero balance in their mandatory accounts sometime between July 30, 2020 and March 31, 2021 , but who also register a balance of less than $200,000 as of March 31.b) they will be able to access a bonus that allows them to complete $200,000 who as of January 1, 2021 are affiliated with the system and, In addition, in their mandatory savings accounts they record a positive balance as of March 31, 2021, but less than $200,000. In this case, the benefit will be delivered or not withdrawn funds. Since this is a tax charge bond, it will be the General Treasury of the Republic (TGR) that must hand over the resources to the administrations. To this end, the Superintendency of Pensions instructed that it is the AFPs who sent directly to the TGR the list of people who qualify to access the benefit. Payroll will be submitted no later than May 13 and if additional information is required, it was established that they may be shipped on May 19 and 26. Once the payroll has been received, the TGR will transfer the funds to the AFPs and they must proceed to generate an application and payment process similar to the third withdrawal. Only once they have received the resources, the admins must make available to their affiliates and beneficiaries a banner or platform on their specific websites about the bonus, as well as manage it through their other channels of care. However, the Superintendency of Pensions and the entities involved in this unpublished process are working to speed up the dates of transfer and payment of resources. For this reason, it is estimated that next week AFPs could have the banner or web platform to manage the application and payment of the bonus, as well as perform the procedure in their other channels of public service. According to the Superintendency’s instruction by 13 May 2021, in parallel with the shipment of the payroll to the Treasury, the administrator must notify the surviving pensioner or beneficiary that she initiated the procedure to require the tax charge bond. Also, on the business day after receiving the resources from the TGR, the administrator must inform the person who already has the funds and who can apply for the bonus. The bonus will be deposited into the mandatory individual capitalization accounts and those of volunteer affiliates. Having said that, it will not be an obligation to withdraw the resources, and these may remain part of the balance. With regard to measures to retain the tax charge bond for alimony owed, debt settlement and their respective payment to food, as well as subrogation of the pensioner or beneficiary for the purpose of requesting their withdrawal, the administrators shall benefit from what the family courts rule. It is important to note that the right to apply for the withdrawal of the tax charge bond may be exercised within 365 days of the publication of the new law in the Official Journal (May 8, 2021).

Original source in Spanish