Peruvian private pension fund manager AFP Horizonte will offer the industry's lowest commission at 1.45%, a company official confirmed.
The rate will be available for those affiliates that sign up for a three-year plan, while those who choose not to sign up for the long-term deal will still see their commissions lowered, but to 1.95%. The new rates will come into effect in October.
Horizonte's previous commission rate was 2.25%, and "was very competitive, but recent announcements have changed the industry," the official told BNamericas.
Horizonte's plan must be approved by the country's banking and insurance regulator SBS, according to the official.
Last week, pension fund AFP Integra lowered its commission to 1.8% and the industry's newest player AFP Prima opened up for business with a rate of 1.45%.
Peru's other AFP's, ProFuturo and Unión Vida, charge 2.45% and 2.27%, respectively.