Peruvian private pension fund manager AFP Integra will lower its commission rate to 1.8% from 2.1%, a company official confirmed to BNamericas.
"The new rate will come into effect in October, and will benefit all of our affiliates," the official said. This year Peru's private pension system has come under heavy fire for allegedly charging very high commission rates.
"The announced reduction is part of the process that led AFP Integra to have the lowest commission at its creation," local daily Gestión reported Integra president Jaime Cáceres as saying.
Despite its rate cut AFP Integra will not have the lowest rate in the industry because the country's newest private pension fund manager, AFP Prima, charges 1.5%.
"For the affiliates, something more important than the cost is the profitability that the AFP offers." Cáceres said.
Peru's other AFPs charge the following commission rates: ProFuturo (2.45%), Unión Vida (2.27%), and Horizonte (2.25%).