Thanks to its firm, long-term commitment to encourage pension savings and further develop the Peruvian pension system, AFP Integra has been exclusively awarded the right to sign up all new contributors to the Private Pension System (SPP in Spanish) between June 2021 and June 2023, this thanks to having lowered its mixed commission for the second time in a row, from 0.82% to 0.79% with respect to the balance-based component (corresponding to the fund’s balance) while maintaining the cash flow component (on salaries/wages) at 0%.
“As part of our purpose of building a better financial future for families, at AFP Integra we are continually evaluating the possibility of reducing our costs, this in order to continue providing solutions for the benefit of all our members. So much so that, for the last tender, we did not skimp on reducing the balance-based commission to 0%, an amount we had recently targeted for 2023. This year has shown us, more than ever, that savings have become a determining factor when it comes to grappling with uncertain times such as we are experiencing at the present time, which is why it is so crucial to be able to strengthening mechanisms for securing our long-term pension savings system ", stated Aldo Ferrini, General Manager of AFP Integra.
This new reduction in commissions shall benefit both AFP Integra's clients who belong to the mixed commission system, as well as new contributors who join up during this 24-month period, which are expected to number 800 thousand new pension fund members.
It is also important to note that AFP Integra has proposed other measures to the corresponding authorities, this in order to help bring about a comprehensive reform of the Peruvian pension system with the aim of providing more and better pensions. These proposals include an integrated multi-pillar system, in which both the public and private sectors work hand in hand so as to provide greater coverage; ensure a minimum pension for all members of the pension system, while rewarding individual savings efforts; as well as introduce a performance-based commission that would allow for a greater alignment between the interests of pension fund members and those of the pension fund management firms.
AFP Integra shall continue to provide its services to its pension fund members while managing their funds in a responsible and professional manner as it has done for more than 25 years. The Company would like to reiterate its desire to further the well-being of our Peruvian citizens and fulfill its promise to assist its members in all stages of their respective lives.