Temporary early retirement program begins Tuesday

Monday, February 15, 2010

Peru's temporary early retirement program, the so-called "Régimen especial de jubilación anticipada," which will be in effect until the end of 2012, begins Tuesday (Feb 16), financial sector regulator SBS said in a press release.

The program, meant to ease the effects of the international financial crisis on the population, allows affiliates of the country's private pension fund managers (AFPs) to receive early pension payouts if they meet certain requirements.

To be eligible under the program, men must be a minimum of 55 years old and women 50 years old, and either must have been unemployed for at least 12 consecutive months, the regulator said.

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People meeting those characteristics will be granted early retirement and begin to receive payments or receive a lump sum of 50% of their pension savings and continue in the system, depending on the value of their savings.

The AFPs will be charged with determining affiliates' eligibility, SBS said.

The economy and finance ministry (MEF) and SBS calculated that initially, at least 20,000 people will qualify for early retirement, while between 120,000 and 180,000 will qualify for the 50% lump sum payment, according to earlier press reports.